Analysis

Cisco’s $8.6M Deal Shows Cost Of Ignoring Cyber Flaws

Law360 (August 9, 2019, 4:09 PM EDT) -- Cisco's agreement to pay $8.6 million to resolve a whistleblower's allegations that it knowingly sold hackable video surveillance gear to government agencies is the first payout in a False Claims Act case brought over cybersecurity, illustrating the growing legal risks of mishandling discovered digital flaws.

The deal announced in New York federal court July 31 will likely embolden other security experts to bring similar qui tam claims that companies are peddling products that do not comply with evolving federal cybersecurity standards, industry attorneys told Law360.

"Because cybersecurity has only grown in importance and in the attention it attracts, this will definitely not...

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