Cisco FCA Deal Shows Viability Of Cybersecurity Qui Tams

Law360 (August 5, 2019, 4:07 PM EDT) -- For years, practitioners have warned that a company’s failure to adequately remedy a known cybersecurity vulnerability could create liability under the False Claims Act and its state analogues.[1]

The $8.6 million FCA settlement between Cisco Systems Inc. and the federal and several state governments that was unsealed on July 31, 2019, proves that such cases are viable. While the amount of the settlement is modest compared to some blockbuster FCA settlements, it will likely be just the first of many given the chronic problems that companies have with cybersecurity and the rewards available to whistleblowers under the FCA.

The lawsuit started...

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