Foley & Lardner LLP partner Joseph Swanson commented on a recent settlement in a health care and cybersecurity case in the Lexology article, “DOJ secures US$11 million cybersecurity-related False Claims Act Settlement.”
Swanson said while enforcement priorities under the new presidential administration have shifted, there has not been an indication that cybersecurity-focused False Claims Act (FCA) enforcement will cease.
With cybersecurity being viewed as a bipartisan issue, Swanson noted how bringing enforcement proceedings against government contractors who are knowingly disregarding their cybersecurity obligations aligns with the Trump administration’s stated goals of reducing government fraud and inefficiencies.
“It stands to reason if they believe there are federal contracts that are not being adhered to because of cybersecurity noncompliance, that they would be interested in bringing enforcement actions on that basis,” he explained.
Highlighting the recent cybersecurity-focused FCA settlement, Swanson said this could signal that entities interacting with armed services agencies may face higher scrutiny under the Trump administration.
“Where the federal contractor has some nexus to the Department of Defense or armed services, I think the administration will remain focused on cybersecurity enforcement because it combines multiple areas of the administration’s interest,” he said, adding that if cybersecurity-focused FCA enforcement is made a lower priority, state attorneys generals and the plaintiffs’ bar may pick up the slack.
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