ARTICLE
22 April 2024

The United States Intervenes In Its First False Claims Act Cybersecurity Case

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Bass, Berry & Sims
Contributor
Bass, Berry & Sims is a national law firm with nearly 350 attorneys dedicated to delivering exceptional service to numerous publicly traded companies and Fortune 500 businesses in significant litigation and investigations, complex business transactions, and international regulatory matters. For more than 100 years, our people have served as true partners to clients, working seamlessly across substantive practice disciplines, industries and geographies to deliver highly-effective legal advice and innovative, business-focused solutions. For more information, visit www.bassberry.com.
The United States notified the U.S. District Court for the Northern District of Georgia that it plans to intervene in a False Claims Act case filed against Georgia Tech Research Corporation...
United States Government, Public Sector
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The United States notified the U.S. District Court for the Northern District of Georgia that it plans to intervene in a False Claims Act case filed against Georgia Tech Research Corporation (Georgia Tech) by its Associate Director of Cybersecurity and former Principal Information Security Engineer (the relators).

Georgia Tech is a party to "hundreds" of contracts with the U.S. Department of Defense (DOD), which grants Georgia Tech access to certain Controlled Unclassified Information (CUI) that must be protected by "adequate" security, which, at minimum, must satisfy the National Institute of Standards and Technology (NIST). The relators allege that: (1) Georgia Tech's internal assessors assigned to determine compliance with NIST were not qualified; (2) the assessors failed to compile sufficient evidence to prove compliance with the standards; (3) the assessors and administrators faced pressures and conflicts of interest; and (3) Georgia Tech bypassed certain malware requirements, in violation of NIST. As a result, the relators claim Georgia Tech's self-attestations of NIST compliance were false.

The relators further allege that they raised these issues of noncompliance internally over the course of several months without satisfaction but instead faced "increasing retaliation," including poor performance reviews and forced resignation.

The relators originally filed the case under seal in July 2022. After more than a year and a half of investigation, the United States notified the court of its decision to intervene. The United States has until June 24, 2024, to serve its Complaint in Intervention. The decision to intervene is yet another sign of increased attention and enforcement under the Department of Justice's Civil Cyber-Fraud Initiative, which we have written about previously.

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ARTICLE
22 April 2024

The United States Intervenes In Its First False Claims Act Cybersecurity Case

United States Government, Public Sector
Contributor
Bass, Berry & Sims is a national law firm with nearly 350 attorneys dedicated to delivering exceptional service to numerous publicly traded companies and Fortune 500 businesses in significant litigation and investigations, complex business transactions, and international regulatory matters. For more than 100 years, our people have served as true partners to clients, working seamlessly across substantive practice disciplines, industries and geographies to deliver highly-effective legal advice and innovative, business-focused solutions. For more information, visit www.bassberry.com.
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