Investigations, Enforcement, & Compliance Alerts

DOJ False Claims Act (FCA) settlements related to cybersecurity typically have focused on false representations by a government contractor of its compliance with cybersecurity requirements. A recently announced settlement shows that private equity owners are not immune from potential FCA liability.

In analyzing a government contractor target for a proposed acquisition—such as a merger, asset sale, or stock purchase—due diligence may uncover a seller’s noncompliance with certain Federal Acquisition Regulations or other applicable regulations.