Just in Time for Halloween: DOJ Launches Cyber Enforcement Initiative Using False Claims Act
Client Alert | 1 min read | 10.08.21
On October 7, 2021, the Department of Justice (DOJ) announced its new Civil Cyber-Fraud Initiative, focused on civil enforcement against government contractors that fail to follow cybersecurity contract requirements. The Initiative, led by the Civil Division’s Commercial Litigation Branch and Fraud Section, will utilize the False Claims Act to combat cyber threats to sensitive information and critical systems by enforcing the government’s contractual cybersecurity standards. The Initiative will hold accountable contractors that knowingly: 1) provide deficient cybersecurity products or services; 2) misrepresent cybersecurity compliance; or 3) fail to monitor and report cybersecurity incidents in accordance with contract requirements.
In addition to contractor accountability, the benefits of the new Initiative are intended to include:
- Building broad resiliency against cybersecurity intrusions across the public and private sectors;
- Ensuring contractors that meet cybersecurity requirements are not at a competitive disadvantage;
- Reimbursing government and taxpayer losses incurred when contractors fail to satisfy their cybersecurity obligations; and
- Supporting efforts to timely issue patches for vulnerabilities in information technology products and services.
The Initiative formalizes what has for several years now been a stated priority area by DOJ for False Claims Act enforcement, as we have previously reported. In accord with the new Initiative, we expect to see an uptick in False Claims Act investigations, settlements, and litigation concerning cybersecurity issues, increased coordination among government agencies, and increased interest by those in the relator’s bar for qui tam actions.
Contacts
Partner, Crowell Global Advisors Senior Director
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Insights
Client Alert | 5 min read | 12.12.25
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On the morning of December 12, 2025, the Eleventh Circuit heard argument in United States ex rel. Zafirov v. Florida Medical Associates, LLC, et al., No. 24-13581 (11th Cir. 2025). This case concerns the constitutionality of the False Claims Act (FCA) qui tam provisions and a groundbreaking September 2024 opinion in which the United States District Court for the Middle District of Florida held that the FCA’s qui tam provisions were unconstitutional under Article II. See United States ex rel. Zafirov v. Fla. Med. Assocs., LLC, 751 F. Supp. 3d 1293 (M.D. Fla. 2024). That decision, penned by District Judge Kathryn Kimball Mizelle, was the first success story for a legal theory that has been gaining steam ever since Justices Thomas, Barrett, and Kavanaugh indicated they would be willing to consider arguments about the constitutionality of the qui tam provisions in U.S. ex rel. Polansky v. Exec. Health Res., 599 U.S. 419 (2023). In her opinion, Judge Mizelle held (1) qui tam relators are officers of the U.S. who must be appointed under the Appointments Clause; and (2) historical practice treating qui tam and similar relators as less than “officers” for constitutional purposes was not enough to save the qui tam provisions from the fundamental Article II infirmity the court identified. That ruling was appealed and, after full briefing, including by the government and a bevy of amici, the litigants stepped up to the plate this morning for oral argument.
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