Honeywell Aerospace Settles FCA Cybersecurity Case with $2 Million Payment

A government contractor, Honeywell Aerospace Inc., has agreed to pay over $2 million to settle a False Claims Act (FCA) matter related to its cybersecurity practices with respect to Department of Defense contracts.

The settlement arose from allegations made by a former IT employee who claimed the company failed to implement necessary cybersecurity controls in connection with its work on quantum computing services. The employee alleged that Honeywell Aerospace relied on inadequate security measures, including a firewall described as 'a smokescreen' to hide its poor practices.

The case highlights the government's continued commitment to enforcing cybersecurity requirements under the FCA, particularly for federal defense contractors handling controlled unclassified information (CUI).

Honeywell Aerospace did not admit to the allegations but agreed to pay over $2 million in settlement, with the relator receiving $375,823.