In “Aerojet Settlement Sets Stage For Future Cyber FCA Suits” (Law360, Expert Analysis, May 3, 2022), Max Rodriguez discusses Markus v. Aerojet RocketDyne Holdings Inc., a whistleblower case settled in the U.S. District Court for the Eastern District of California that was the first cybersecurity compliance qui tam case under the False Claims Act (FCA) case to move forward successfully—first past a motion to dismiss, then a motion for summary judgment, and then to trial and a resulting settlement.
Max notes that while this case was the first, it will not be the last. In 2021, the U.S. Department of Justice announced a Civil Cyber-Fraud Initiative to focus on using the FCA to hold government contractors and grantees who don't meet the government's cybersecurity standards liable.
This sort of public announcement, that cybersecurity cases are a top priority, is an invitation for credible whistleblowers to come forward and know that their cases will get the appropriate attention they deserve.
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Aerojet Settlement Sets Stage For Future Cyber FCA Suits | Law360