Federal Court Confirms That Cybersecurity Gaps Can Form the Basis of False Claims Act Violations

Since the Department of Defense (DoD) and other federal agencies began implementing formal cybersecurity requirements for government contractors within the last few years, one lingering question on the minds of federal contractors and subcontractors has been:  “What happens if I do not comply?”  Firms, including ours, have counseled that breach of contract claims are possible, and cautioned against misrepresentations of compliance.  Now a federal district court has confirmed what has long been suspected, that failure to abide by contractual and regulatory cybersecurity requirements may lead to liability under the False Claims Act.