In recent weeks, cyberlaw has become an increasingly relevant field with the surge in cyber-related activities having legal implications. As observed, there has been a rise in the news of cyber-related False Claims Act (FCA) activities. This underscores the importance for corporations, contractors and universities to review their cybersecurity practices and anticipate an escalation in enforcement.
In an instance that made headlines recently, the court unsealed a qui tam lawsuit on September 1, 2023, against Penn State University. The lawsuit pertains to allegations of non-compliance with Department of Defense (DoD) cybersecurity obligations. This event in itself is a testimony to the modern-day challenges faced by universities and the urgent need for revamping cybersecurity protocols in place.
Less than a week later, on September 5, 2023, the Department of Justice (DOJ) announced a multi-million dollar FCA settlement with Verizon under its Civil-Cyber Fraud Initiative. This coverage bears testament to the fact that even corporate giants are not absolved from the legal responsibility of implementing robust cybersecurity measures.
These incidents serve as a wake-up call for corporations, contractors and educational institutions, prompting them to scrutinize their cybersecurity practices. As suggested by legal experts, conducting a comprehensive risk assessment of the prevailing security infrastructure and ensuring compliance with the relevant regulatory frameworks should be of paramount importance. Heightened vigilance and preparation could well serve as strategic imperatives in the present circumstances marked by an apparent uptick in enforcement of the False Claims Act.