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DOJ’s False Claims Act and why it matters to Defense Contractors

DOJ’s False Claims Act and why it matters to Defense Contractors

On April 27, 2022, Aerojet Rocketdyne agreed to pay roughly $9 million to settle a False Claims Act complaint relating to overstated levels of cybersecurity compliance and controls. The case is significant because it is the first time that a whistleblower has successfully used the False Claims Act to hold a defense contractor accountable for cybersecurity fraud. The case also sets an important precedent for future whistleblowers who are trying to hold defense contractors accountable for cybersecurity violations.