Earlier this month, the Department of Justice (DOJ) announced that Swiss Automation Inc., an Illinois-based precision machining company, agreed to pay $421,234 to resolve allegations that it violated the False Claims Act (FCA) by inadequately protecting technical drawings for parts delivered to Department of Defense (DoD) prime contractors. This settlement reflects DOJ’s persistent emphasis on cybersecurity compliance across all levels of the defense industrial base, reaching beyond prime contractors to encompass subcontractors and smaller suppliers. The settlement is also a reminder to all contractors not to overlook the often confusing relationship between Controlled Unclassified Information (CUI) and export-controlled information.Continue Reading An ITAR-ly Critical Reminder of Cybersecurity Requirements: DOJ Settles with Swiss Automation, Inc.
From Yellow Jackets to Red Flags: DOJ Stings Georgia Tech for Alleged Cybersecurity Noncompliance
On September 30, 2025, the Department of Justice (DOJ) announced that Georgia Tech Research Corporation (GTRC) agreed to pay $875,000 to settle allegations that it violated the False Claims Act (FCA) and federal common law by failing to meet cybersecurity requirements under certain Air Force and Defense Advanced Research Projects Agency (DARPA) contracts. The settlement adds to the growing list of recoveries under DOJ’s Civil Cyber-Fraud Initiative and is yet another example of DOJ’s ongoing enforcement focus on cybersecurity obligations for federal contractors handling sensitive government information. The settlement also provides insight into how government contractors may challenge FCA liability when faced with allegations of cybersecurity noncompliance.Continue Reading From Yellow Jackets to Red Flags: DOJ Stings Georgia Tech for Alleged Cybersecurity Noncompliance
Hardening Software Security: DOJ’s Civil Cyber Fraud Settlements Continue to Illumina[te] the Importance of Cybersecurity
On July 31, 2025, the Department of Justice (DOJ) announced that Illumina, Inc. will pay $9.8 million to resolve allegations that it violated the False Claims Act (FCA) by selling genomic sequencing systems with software containing cybersecurity vulnerabilities to federal agencies. This is the first FCA settlement involving claims that a medical manufacturer failed to incorporate adequate product cybersecurity into its software design and development.Continue Reading Hardening Software Security: DOJ’s Civil Cyber Fraud Settlements Continue to Illumina[te] the Importance of Cybersecurity
Grant Slam: New Executive Order Serves Up Changes for Federal Grants
On August 7, 2025, President Trump issued an Executive Order (EO) titled, “Improving Oversight of Federal Grantmaking,” setting out the framework for sweeping changes to the grantmaking process. The order purports to address the Administration’s concerns about federal grants supporting controversial or ineffective programs and incurring excessive administrative costs. The EO implements three key changes to federal grant requirements. Continue Reading Grant Slam: New Executive Order Serves Up Changes for Federal Grants
For Better or MORSE: Another Settlement Under DOJ’s Civil Cyber-Fraud Initiative
On March 26, 2025, the Department of Justice (DOJ) announced that defense contractor MORSECORP Inc. (MORSE) will pay $4.6 million to settle allegations that MORSE violated the False Claims Act (FCA) by failing to comply with cybersecurity requirements and subsequently submitting false or fraudulent claims for payment in its contracts with the Departments of the Army and Air Force. This is the first FCA settlement that is based on a defense contractor’s failure to reevaluate and promptly update its self-assessment score in the Supplier Performance Risk System (SPRS) after a third-party assessment resulted in a lower score.Continue Reading For Better or MORSE: Another Settlement Under DOJ’s Civil Cyber-Fraud Initiative
Cyber For All: Proposed Rule Introduces Government-Wide CUI Cybersecurity Requirements
On January 15, 2025, the FAR Council released a proposed rule (FAR CUI Rule) that would amend the FAR to implement federal government-wide Controlled Unclassified Information (CUI) cybersecurity, training, and incident reporting requirements for government contractors and subcontractors. The rule’s key cybersecurity requirements closely mirror the Department of Defense’s Cyber Maturity Model Certification (CMMC) program (for example, compliance with National Institute of Standards and Technology Special Publication 800-171, Revision 2), but broaden the scope to include contractors and subcontractors working across all federal agencies. The Rule is intended to standardize the handling of CUI by federal government contractors and subcontractors in accordance with Executive Order 13556, including by:Continue Reading Cyber For All: Proposed Rule Introduces Government-Wide CUI Cybersecurity Requirements