Recent Cyber-Related False Claims Act Activity Signals Contractors and Universities Should Examine Their Cybersecurity Practices and Brace for an Uptick in Enforcement
Sheppard Mullin – In recent weeks, there has been an uptick in news of cyber-related FCA activity.
For example, on September 1, the court unsealed a qui tam lawsuit against Penn State University relating to allegations of non-compliance with DoD cybersecurity obligations. Separately, on September 5, the DOJ announced a multi-million dollar FCA settlement with Verizon under its Civil-Cyber Fraud Initiative (which focuses on leveraging the FCA to pursue cybersecurity related fraud by government contractors and grant recipients, as we previously discussed here). These and other cases suggest—as many had been speculating—that the number of enforcement actions and publicity associated with previously-sealed qui tam cases will continue to increase. They also signal that contractors and universities should brace for additional scrutiny and potential whistleblower claims in this area.
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