LOGZONE Marks a First in FCA Cyber Enforcement

A recent DOJ settlement signals that government contractors can face False Claims Act (FCA) liability for cybersecurity compliance failures even without a whistleblower complaint, voluntary self-disclosure or data breach, making accurate compliance assessments more critical than ever. In the DOJ’s settlement with defense contractor LOGZONE, the company agreed to pay $507,144 to resolve claims brought under the FCA alleging that it knowingly failed to comply with cybersecurity requirements in Navy contracts. This article explores the implications of the settlement, with compliance lessons from partners at Joseph Greenwald & Laake, Foley & Lardner, Parker Poe and Crowell & Moring. See “What to Know (and Do) About DOJ’s Efforts to Identify and Prosecute Cybersecurity Fraud Under the False Claims Act” (Oct. 30, 2024).

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