The latest development in compliance enforcement comes as the Department of Justice (DOJ) has solidified its precedent of using the False Claims Act (FCA) to maintain cybersecurity standards. This reaffirmation came on September 5, 2023, when the DOJ announced its FCA settlement with Verizon Business Network Services, LLC evidenced this trend.
The DOJ’s action was spurred by Verizon’s purported non-compliance with cybersecurity stipulations in providing services to various federal agencies. Critical in this case was the government contract with Verizon to deliver secure internet connections. The case’s details have been eloquently elucidated by Bradley Arant Boult Cummings LLP on JD Supra.
This settlement has profound implications and serves as a stark reminder to other industry players about federal cybersecurity standards enforced through the FCA. Legal professionals need to understand these key points, offering valuable intricacies into the DOJ’s enforcement patterns which can assist corporations and law firms in mitigating potential liabilities.
- The DOJ seems persistent in maintaining and amplifying the use of the False Claims Act in cases of cybersecurity non-compliance.
- Firms that engage in governmental contracts must comply with state stipulated cybersecurity guidelines to avoid FCA litigations.
- The settlement with Verizon suggests that companies could not only be held accountable for cybersecurity violations but also for misrepresentation regarding adherence to cybersecurity standards in government contracts.
Moving forward, companies must be diligent about maintaining rigorous cybersecurity protocols, particularly when engaged in contracts with state agencies. Legal professionals within these firms need to be aware of changing regulations and legal actions to ensure their firm stays within the bounds of compliance.
By heightening risk analysis, regular audits, and internal training, potential liabilities can be mitigated. Considering cybersecurity is not only a technical issue but a legal one, firms should look into collaborating the expertise of their IT departments with their legal teams for successful compliance.