On July 31, 2025, the U.S. Department of Justice announced a $1.75 million False Claims Act (FCA) settlement with Aero Turbine, a California-based defense contractor, and private equity firm Gallant Capital Partners. The settlement arises out of allegations that Aero Turbine failed to comply with cybersecurity requirements under a U.S. Air Force contract and provided impermissible foreign third-party access to sensitive defense information.
Read on to learn how this settlement highlights an example of the DOJ’s increased scrutiny of cybersecurity requirements under the Cyber Fraud Task Force under the FCA and its focus on pursuing private equity investors and rewarding entities that self-disclose and remediate wrongdoing.