The Law Offices of Darth M. Newman LLC is proud to announce the resolution of a Cyber Fraud False Claims Act case against Pennsylvania State University. Penn State has agreed to pay the United States $1.25M to resolve a qui tam suit brought by Matthew Decker, the former Chief Information Officer for Penn State's Applied Research Laboratory.
The False Claims Act allows individuals, or whistleblowers, to sue on the government’s behalf when they have evidence of fraud against the federal government. If the case succeeds, the whistleblower may receive a portion of the recovered funds as a reward, encouraging accountability in cases of government fraud.
In this case, the complaint alleged that PSU failed to implement required cyber security safeguards in connection with several Department of Defense and NASA contracts. These contracts require contractors that receive or create unclassified Covered Defense Information or Controlled Unclassified Information to follow certain NIST, DFARS, and/or NASA FARS cyber security standards and regulations. Failing to meet these stringent requirements potentially compromises sensitive information.
“Federal contractors who store or access covered defense information must take required steps to protect that sensitive information from bad actors,” United States Attorney Jacqueline C. Romero said in an October 2024 press release from the U.S. Attorney's Office, Eastern District of Pennsylvania. "When they fail to meet their cybersecurity obligations, we and our law enforcement partners will use every available tool to remedy the situation."
The relevant regulations also require self-assessment submissions to the Supplier Performance Risk System (“SPRS”). The United States alleged that Penn State failed to meet these requirements with respect to 15 contracts between January 2018 and November 2023. Julie Bracker of Bracker & Marcus LLC was lead counsel for Mr. Decker. Darth Newman served as local counsel. Their collaborative efforts helped achieve a successful resolution of this significant case.
The successful and relatively quick resolution of this case highlights the importance of safeguarding government information and the seriousness with which the Department of Justice takes its Civil Cyber-Fraud Initiative. Mr. Decker's case is among the first qui tams to be resolved under the Initiative.
At The Law Offices of Darth M. Newman LLC, we are committed to supporting clients who take courageous steps in similar cases, ensuring fair outcomes for those who expose non-compliance and fraud. As experienced Pittsburgh, PA qui tam lawyers, we have the background and local insight necessary to handle these unique legal challenges, particularly in matters involving government contracts and compliance.
If you believe you have witnessed fraudulent activity involving government funds, we encourage you to reach out. Connect with us at The Law Offices of Darth M. Newman LLC today for a confidential consultation to explore your legal options.
