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This week sees the Aerojet Rocketdyne case go back to court on the 26th April. In what is seen as a test case for the US Department of Justice (DoJ), and its use of the False Claims Act (FCA) against companies that are contractually required to implement cybersecurity as part of their contracts with Federal Government.
The Case is going to test the Whistleblowing program, burden of proof and provide an early test of how the DoJ will apply the FCA to allegations of cybersecurity fraud. The burden of proof is high under the False Claims Act, intent to defraud has to be proven which maybe difficult and fines the imposed could be significant, amounting to 3 times the value of each invoice.
The case could have implications for Federal suppliers inside and outside of the US. With many companies not complying to DFARS and implementing cybersecurity, what will it mean for these companies, and the DoJ. With numerous publications discussing the DoJs civil cyber fraud initiative and its application to Defense Federal Acquisition Supplement (DFARS). That is applied to Prime Defense contractors and their subcontractors.
Whichever way the case goes it’s going to provide valuable information to the DIB and DoJ.
Ted Dziekanowski
#cybersecurity #cyberrisk #falseclaimsact #defense
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