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Aerojet Rocketdyne will pay $ 9 million to solve cyber security allegations



(Reuters) – Rocket engine maker Aerojet Rocketdyne has agreed to pay $ 9 million to resolve allegations that they have distorted compliance with cyber security requirements in federal contracts, the US Department of Justice said on Friday.

Aerojet did not respond to requests for comment.

Aerojet provides propulsion and power systems for launch vehicles, missiles and satellites and other spacecraft to the Pentagon, National Aeronautics and Space Administration and other federal agencies, the Justice Department said.

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

Markus and Aerojet reached a settlement in the case on the second day of the trial in April, the Ministry of Justice said. He will receive $ 2.61

million as part of the deal. The settlement was approved on July 5 by a U.S. district court in California.

A court complaint from Markus said between July 2013 and September 2015 that Aerojet received over $ 2.6 billion in government funds by “fraudulently procuring” contracts from the Department of Defense and NASA that were “essential components of the U.S. national defense and aviation program” through to falsely represent it followed the rules of cybersecurity.

Following a cyberattack in 2013, Aerojet hired Markus as a senior cyber security officer, but he said he did not have the budget or staff that Aerojet had promised. He also claimed that Aerojet hid from its board in 2015 that the company did not meet the requirements for cyber security.

Aerojet defended in court in April, submitting “many detailed disclosures to the relevant government agencies regarding the state of compliance with these cybersecurity standards in 2014, 2015 and beyond.”

Aerojet did not acknowledge any crimes as part of the deal.


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