LOGZONE Settles False Claims Act Allegations Over Cybersecurity Failures

LOGZONE Inc., a defense contractor based in Alabama, has agreed to pay $507,144 to resolve allegations of failing to comply with cybersecurity requirements mandated by the Department of the Navy. The settlement addresses claims that LOGZONE knowingly submitted false claims for payment on two Navy contracts from May 2021 to March 2025, during which it failed to implement necessary cybersecurity controls outlined in NIST SP 800-171. An assessment revealed that LOGZONE scored -170, significantly below the required standards. The settlement includes $253,572 in restitution and highlights the ongoing scrutiny of defense contractors regarding cybersecurity compliance. This case is part of a broader initiative by the Justice Department to enforce cybersecurity standards among government contractors to protect sensitive defense information.

Key Points: • LOGZONE agreed to pay over $507,000 for failing to meet cybersecurity standards. • The company scored -170 on a cybersecurity assessment, indicating severe non-compliance. • The settlement reflects increased scrutiny of defense contractors by the Department of Defense.