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DOJ Cyber Fraud Settlements Show the Expanding Reach of the False Claims Act

Recent False Claims Act (“FCA”) settlements demonstrate the effectiveness of the Department of Justice’s (“DOJ”) Civil Cyber-Fraud Initiative, holding accountable for misrepresenting cybersecurity controls. Georgia Tech Research Corporation’s $875,000 settlement is the latest in this growing trend. Miller Shah LLP represents whistleblowers in cybersecurity and government contracting fraud, helping ensure digital security failures do not put sensitive government data at risk. What is the Civil Cyber-Fraud Initiative? The DOJ launched the Civil Cyber-Fraud Initiative in October 2021 to pursue cybersecurity-related fraud under the FCA. This initiative combines the DOJ’s expertise in civil fraud enforcement, government procurements, and cybersecurity to combat the growing threats to essential cyber infrastructure…

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Illumina’s $9.8M Settlement Highlights Expanding Cybersecurity False Claims Act Enforcement

Illumina Inc. (“Illumina”) will pay $9.8 million to resolve allegations that it violated the False Claims Act (“FCA”) by selling DNA sequencing tools to federal agencies without meeting Government-mandated security standards. The case reflects a growing practice by the Department of Justice (“DOJ”) to hold contractors accountable for cybersecurity failures using the FCA, and highlights the critical role of whistleblowers in exposing such security cybersecurity risks. Allegations of Cyber Fraud…

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