Cybersecurity Policy Report, Cybersecurity Lapses Cost Federal Contractor $9.8M in False Claims Act Settlement, (Aug 1, 2025)
Organizations Mentioned:Illumina
A provider of genomic sequencing services will pay $9.8 million to resolve a False Claims Act case in which it was accused of misleading federal agencies about the cyber defenses of its equipment, the Department of Justice announced yesterday.
Illumina, Inc., had contracts with a variety of federal agencies but violated contractual provisions requiring its genomic sequencing hardware and software to comply with cybersecurity practices recommended by the National Institute of Standards and Technology, according to a settlement agreement filed in U.S. District Court for the District of Rhode Island.
“Companies that sell products to the federal government will be held accountable for failing to adhere to cybersecurity standards and protecting against cybersecurity risks,” Assistant Attorney General Brett Shumate said in a news release. “This settlement underscores the importance of cybersecurity in handling genetic information and the Department’s commitment to ensuring that federal contractors adhere to requirements to protect sensitive information from cyber threats.”
The case was initiated by a former Illumina executive who will receive a $1.9 million share of the settlement pursuant to the False Claims Act’s qui tam provisions.
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