FCA

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A recent multi-state lawsuit challenging the Trump administration’s anti-DEI mandate highlights a major shift in the ongoing ESG backlash tracked by The D&O Diary. The case alleges that federal contractors are trapped by poorly defined requirements, which could lead to D&O exposure in a number of industry sectors. Because compliance is now tied directly to government revenue, even minor missteps could trigger contract termination, permanent debarment, and high-stakes fraud litigation under the False Claims Act.

Continue Reading New Challenge to Federal Contractor DEI Restrictions and D&O Impact

Well-advised companies know that among their key corporate risks are potential liability exposures arising from or related to cybersecurity. A recent U.S. Department of Justice enforcement action highlights the fact that corporate cybersecurity risk may take a number of forms, including, as was the case in the recent matter, potential False Claims Act (FCA) liability for cybersecurity vulnerabilities in products sold to the federal government. The fact that the recent case, involving life sciences company Illumina, settled for $9.8 million, underscores the seriousness of this cybersecurity-related liability FCA exposure.

Continue Reading Cybersecurity and False Claims Act Liability Exposure