Penn State to Pay $1.25M in False Claims Act Settlement Over Cybersecurity Failures in Government Contracts
Pennsylvania State University (Penn State) has agreed to pay $1.25 million to settle allegations of violating the False Claims Act, stemming from its failure to meet contractual cybersecurity requirements between 2018 and 2023. The university allegedly failed to implement cybersecurity controls mandated by the Department of Defense (DoD) and NASA on 15 contracts or subcontracts. These failures included misrepresenting the implementation of specific cybersecurity controls and using a cloud service provider that did not meet DoD’s security standards for handling sensitive defense information.