El Segundo-based Aerojet Rocketdyne Inc. has agreed to pay $9 million to resolve allegations that it violated federal law by misrepresenting its compliance with cybersecurity requirements in certain government contracts, the Department of Justice announced Friday.
Aerojet provides propulsion and power systems for launch vehicles, missiles and satellites and other space vehicles to the Department of Defense, NASA and other federal agencies.
The settlement resolves a lawsuit filed seven years ago by former Aerojet employee Brian Markus against Aerojet under the whistleblower provisions of the False Claims Act, which permit a private party to file a lawsuit on behalf of the United States and receive a portion of any recovery.
Markus and Aerojet reached a settlement of the case in April on the second day of trial in federal court in Sacramento. Markus will receive $2.61 million as his share of the False Claims Act recovery, according to the DOJ.
“Whistleblowers with inside information and technical expertise can provide crucial assistance in identifying knowing cybersecurity failures and misconduct,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the DOJ’s civil division.
In the settlement agreement, which was approved by the judge Tuesday, the contractor expressly denied any violation of the FCA.