Aerojet Rocketdyne to pay $9M million to resolve cybersecurity allegations

(Reuters) — Rocket engine maker Aerojet Rocketdyne has agreed to pay $9 million to resolve allegations it misrepresented its compliance with cybersecurity necessities in federal contracts, the U.S. Justice Division stated Friday.

Aerojet didn’t reply to requests for remark.

Aerojet supplies propulsion and energy techniques for launch autos, missiles and satellites, and different house autos to the Pentagon, Nationwide Aeronautics and House Administration and different federal businesses, the Justice Division stated.

The settlement resolves a 2015 lawsuit filed by former Aerojet worker Brian Markus underneath the whistleblower provisions of the False Claims Act.

Mr. Markus and Aerojet reached a settlement of the case on the second day of trial in April, the Justice Division stated. He’ll obtain $2.61 million as his share of the settlement. The settlement was authorized on July 5 by a U.S. District Court docket in California.

A courtroom submitting from Mr. Markus stated between July 2013 and September 2015, Aerojet acquired over $2.6 billion in authorities funds by “fraudulently procuring” Protection Division and NASA contracts that have been “important parts of America’s nationwide protection and aerospace packages” by falsely representing it complied with cybersecurity laws.

After a 2013 cyberattack, Aerojet employed Mr. Markus as a senior cybersecurity official, however he stated he didn’t have the price range or workers Aerojet had promised. He additionally claimed Aerojet in 2015 hid from its board that the corporate was not compliant with cybersecurity necessities.

Aerojet stated in its protection in an April courtroom submitting it “made many detailed disclosures to the related authorities businesses relating to the state of its compliance with these cybersecurity requirements in 2014, 2015, and past.”

Aerojet didn’t admit any wrongdoing as a part of the settlement.

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