Defense Contractor ILC Pays $13 Million to Settle Cybersecurity Claims
Summary
ILC agreed to pay $13 million to resolve government allegations that it failed to meet cybersecurity requirements on federal contracts from 2018 to 2024. Its parent said it addressed the issues; the settlement includes no admission of liability.
Key points
- The settlement resolves False Claims Act allegations involving ILC contracts with the Army, Missile Defense Agency and NASA.
- The government alleged ILC stored sensitive data with a third-party cloud provider without proper safeguards and failed to maintain required security plans for covered systems.
- The alleged noncompliance spanned 2018–2024; the settlement does not include an admission of liability.
- Ingersoll Rand said it became aware of the matter after acquiring ILC Dover in June 2024, addressed the issues, and was compliant by October 2024.
- The whistleblower, ILC's former director of cybersecurity, will receive $2.35 million.
- The article says the Justice Department began using the False Claims Act in 2022 to penalize contractors for cybersecurity shortcomings.
Article Details
- Event Type
- False Claims Act settlement over alleged cybersecurity contract noncompliance
- Impact
- ILC agreed to pay $13 million to resolve government allegations that it submitted claims for payment while failing to meet cybersecurity requirements in contracts with the Department of the Army, Missile Defense Agency, and NASA. The allegations included inadequate safeguards for sensitive cloud-stored data and missing or outdated security plans. Ingersoll Rand said it addressed the issues and was compliant by October 2024; it resolved the matter without admitting liability. Whistleblower Philip Root will receive $2.35 million.
People
Benjamin WallaceU.S. Attorney for the District of Delaware who commented on the settlement and the purpose of the cybersecurity obligations.Brett A. ShumateAssistant Attorney General of the Justice Department’s Civil Division who commented on contractors’ cybersecurity obligations.Philip RootILC’s former director of cybersecurity and the whistleblower in the case; he will receive $2.35 million from the settlement.Sara HasellIngersoll Rand spokesperson who said the company addressed the identified issues and resolved the matter without admitting liability.
Countries
Industries
AerospaceA Delaware-based defense and aerospace company has settled a case with U.S.DefenseA Delaware-based defense and aerospace company has settled a case with U.S.Industrial ManufacturingAmerican industrial manufacturing giant Ingersoll Rand, the parent company of ILC Dover, said it inherited the issue when it purchased the firm.