By Andrea DeField, Sean O’Connell and Geoffrey Fehling (November 19, 2021, 2:50 PM EST) — The U.S. Department of Justice recently announced its new Civil Cyber-Fraud Initiative — a plan to prosecute cybersecurity-related fraud through civil actions using the False Claims Act.
Fortunately for companies and executives involved in FCA matters, directors and officers, or D&O, and cyber insurance can help defray substantial costs of defense and even liability for settlements of FCA actions alleging failures in cybersecurity procedures, disclosures and controls, like those envisioned by the DOJ’s new initiative.
What is the Civil Cyber-Fraud Initiative?
Per the DOJ, this new task force, announced on Oct. 6, “will utilize the False Claims Act to pursue cybersecurity…
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