Aero Turbine Inc. and Gallant Capital Partners LLC have agreed to pay $1.75 million to settle allegations of failing to meet cybersecurity requirements in a contract with the U.S. Air Force. The companies “knowingly” did not comply with mandatory cybersecurity standards under their defense contract. The settlement comes amid increased scrutiny of military data protection, according to the U.S. Attorney's Office.
Assistant Attorney General Brett A. Shumate stated that “Government contractors must follow required cybersecurity standards to protect sensitive defense information,” following reports that Aero Turbine and Gallant exposed defense data accessible to an Egyptian software company. Both companies received credit for cooperating and self-reporting. Shumate noted that “When defense contractors fail to comply with cybersecurity requirements, they can mitigate the consequences by making timely self-disclosures, cooperating with investigations, and taking prompt remedial measures.” Acting U.S. Attorney Kimberly A. Sanchez said, "Every defense contractor must provide adequate security to safeguard covered defense information," while acknowledging the companies’ disclosure and cooperation, as reported by the U.S. Attorney's Office.
Aero Turbine and Gallant reached a settlement to resolve allegations under the False Claims Act related to cybersecurity compliance, with no determination of liability made. The Justice Department’s Civil Division and the Defense Criminal Investigative Service led the investigation. DCIS Director Kelly Mayo said, “Failing to comply with DoD contract specifications and cybersecurity requirements puts DoD information and programs at risk of exploitation,” as stated by the U.S. Attorney's Office.
