ILC Dover/ILC Astrospace Pays $13M to Settle False Claims Act Cybersecurity Violations
ILC — the collective name used by the U.S. government for ILC Dover and ILC Astrospace — agreed to a $13 million settlement with the Department of Justice over allegations it submitted false claims for payment on contracts with the Department of the Army, Missile Defense Agency, and NASA despite knowing it was not meeting required cybersecurity obligations between 2018 and 2024. Allegations include storing sensitive data in the cloud through a third party without proper safeguards and failing to develop and update mandated security plans for covered information systems. Ingersoll Rand, which acquired ILC Dover in June 2024, said it inherited the issue, took corrective action, and achieved compliance by October 2024; it settled without admitting liability. The case is one of the larger settlements under the Justice Department's post-2022 use of the Civil War-era False Claims Act to penalize federal contractors for cybersecurity shortcomings. The whistleblower, former ILC director of cybersecurity Philip Root, will receive $2.35 million of the settlement.
Remediação
Ingersoll Rand states it is now in compliance with applicable cybersecurity contract requirements as of October 2024; government attorneys note a forthcoming regulatory overhaul could expose more federal contractors to similar False Claims Act liability for cybersecurity non-compliance.
Linha do tempo
-
ILC Dover/ILC Astrospace Pays $13M to Settle False Claims Act Cybersecurity Violations
ler a análise desta fonte ocultar
ILC — the collective name used by the U.S. government for ILC Dover and ILC Astrospace — agreed to a $13 million settlement with the Department of Justice over allegations it submitted false claims for payment on contracts with the Department of the Army, Missile Defense Agency, and NASA despite knowing it was not meeting required cybersecurity obligations between 2018 and 2024. Allegations include storing sensitive data in the cloud through a third party without proper safeguards and failing to develop and update mandated security plans for covered information systems. Ingersoll Rand, which acquired ILC Dover in June 2024, said it inherited the issue, took corrective action, and achieved compliance by October 2024; it settled without admitting liability. The case is one of the larger settlements under the Justice Department's post-2022 use of the Civil War-era False Claims Act to penalize federal contractors for cybersecurity shortcomings. The whistleblower, former ILC director of cybersecurity Philip Root, will receive $2.35 million of the settlement.
Remediation
Ingersoll Rand states it is now in compliance with applicable cybersecurity contract requirements as of October 2024; government attorneys note a forthcoming regulatory overhaul could expose more federal contractors to similar False Claims Act liability for cybersecurity non-compliance.