2 FCA Settlements Highlight Gov't Cyber Liability Focus

By Danny Ashby, Amanda Santella and John Dermody (May 31, 2022, 6:15 PM EDT) — Amid a swirl of high-profile cyber incidents and government warnings about cyber threats to critical infrastructure, two recent False Claims Act settlements related to cybersecurity point to a new front of potential cyber liability for companies doing business with the government.

On March 8, the U.S. Department of Justice reached a $930,000 settlement with Comprehensive Health Services LLC for falsely attesting that it properly secured medical records relating to U.S. Department of State and U.S. Department of Defense contracts.

And on April 27, Aerojet Rocketdyne Holdings Inc. reached a settlement with FCA relator Brian Markus who alleged that Aerojet lied to…

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