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Buyer Beware: Cybersecurity Compliance in M&A
Blank Rome – A recent Department of Justice settlement highlights the importance of assessing cybersecurity compliance for government contractors during mergers and acquisitions (“M&A”). In April 2025, DOJ announced an $8.4 million settlement with a defense contractor resolving alleged cybersecurity noncompliance by a company it acquired. Notably, under the settlement, the acquiring company was liable for cybersecurity noncompliance that occurred prior to the acquisition.