False Claims Act

Johnson Controls, Inc. and two subsidiaries agreed to pay $5 million to resolve False Claims Act allegations over cybersecurity requirements on contracts supporting NASA, DoD, DOE, and DOJ. The alleged failures spanned January 2018 through August 2025, highlighting the importance of contract-specific security controls and records documenting remediation.

The Fifth Circuit affirmed dismissal of whistleblower Brook Jackson’s False Claims Act suit alleging fraud by Pfizer contractor Ventavia Research Group during a COVID-19 vaccine trial. Applying the framework in the Supreme Court’s 2023 Polansky decision, the ruling underscores DOJ’s ability to intervene and seek dismissal, but creates no new procurement requirement.

ILC Dover LP and ILC Astrospace LLC agreed to pay $13 million to resolve allegations that cybersecurity controls were inadequate on federal contracts supporting the Army, Missile Defense Agency, and NASA. The settlement, including $6.5 million in restitution, highlights False Claims Act and financial exposure tied to inaccurate security assessments and third-party cloud oversight, even without a successful breach.

Lockheed Martin agreed to pay $29.5 million to resolve federal allegations concerning anti-discrimination requirements tied to federal contracts and separate EEOC claims. The company denied the allegations and did not admit liability; no specific contract or new procurement opportunity was identified. The settlement highlights potential False Claims Act exposure related to contractor compliance certifications.

Noble Supply & Logistics and 10 affiliates are pursuing nearly $19 million in equipment claims and about $86 million tied to an aircraft-parts contract while in Chapter 11. A Delaware bankruptcy judge rejected DLA’s bid for superpriority or setoff based solely on pending False Claims Act litigation, as terminated orders and a Q4 2026 contract renewal raise continuity and sourcing questions.

ILC Dover LP and ILC Astrospace LLC agreed to pay $13 million to resolve False Claims Act allegations that they misrepresented compliance with cybersecurity requirements on federal contracts involving the Army, Missile Defense Agency, and NASA. The settlement highlights potential contractor liability for deficient security controls, cloud safeguards, security plans, and DoD assessment reporting; it does not create a new procurement opportunity.

Honeywell Aerospace has settled for $2.04 million over alleged NIST SP 800-171 compliance failures. This case reinforces the critical need for contractors to adhere strictly to cybersecurity regulations to avoid significant penalties under the False Claims Act as enforcement measures remain stringent even amid CMMC rollouts.

Sierra Nevada Company LLC will pay $7.75 million to settle False Claims Act allegations regarding potential conflicts of interest due to employing a Department of Defense official. This case indicates a heightened focus on contractor compliance with ethics regulations, emphasizing the need for rigorous internal controls to avoid similar pitfalls in procurement practices.

LOGZONE Inc. has agreed to a $507,144 settlement with the Department of Justice regarding alleged cybersecurity compliance failures in Navy contracts. This case highlights the increased enforcement of cybersecurity standards under NIST SP 800-171, pressing contractors to enhance their cybersecurity practices or face significant repercussions.