# DOJ Resolves $13 Million ILC Cybersecurity Case

On November 3, 2026, the U.S. Department of Justice announced that ILC Dover LP and affiliate ILC Astrospace LLC agreed to pay $13 million to resolve False Claims Act allegations involving cybersecurity representations on federal contracts with the U.S. Army, Missile Defense Agency, and NASA. The alleged deficiencies, covering January 2018 through October 2024, included incomplete NIST control implementation, missing or outdated system security plans and assessments, and use of a cloud provider without required security assurances. The settlement resolves allegations and is not a determination of liability; no new solicitation or procurement action was announced.

- Contractors supporting the Army, MDA, NASA, or other federal programs should compare cybersecurity representations made in contract claims and assessments with current, system-specific evidence, including control implementation, system security plans, and remediation records.
- Organizations handling controlled unclassified information should review cloud-provider safeguards and required security assurances across their prime and subcontract portfolios, including the FedRAMP Moderate-equivalent safeguards referenced in the signals.
- **Why this matters:** The settlement demonstrates potential False Claims Act exposure when cybersecurity representations connected to federal contract claims do not match implemented controls or supporting documentation.

**Jurisdictions:** federal
**Industries:** Defense & Military, Information Technology
**Topics:** Cybersecurity, Regulatory Compliance
**Published:** November 05, 2026

### Government Entities
- U.S. Department of Justice (DOJ)
- U.S. Army (Army)
- Missile Defense Agency (MDA)
- National Aeronautics and Space Administration (NASA)

### Vendors
- ILC Dover LP (settling contractor)
- ILC Astrospace LLC (settling contractor)

### Key Quotes
> To protect sensitive information from cyber threats, defense and aerospace contractors must comply with the cybersecurity requirements in their federal contracts and subcontracts.
> — Brett Shumate, Assistant Attorney General

> My office is committed to ensuring that cybersecurity requirements in contracts are honored and that America's leadership in aerospace is protected.
> — Benjamin L. Wallace, U.S. Attorney for the District of Delaware

### Sources
- [ILC Dover to pay $13 million to settle federal cybersecurity whistleblower allegations | Kent County | delawarebusinessnow.com](https://www.delawarebusinessnow.com/news/kent_county/ilc-dover-to-pay-13-million-to-settle-federal-cybersecurity-whistleblower-allegations/article_f6fdc708-3fa2-4866-b0d3-975e2d308721.html) - Delaware Business Now
- [ILC Dover to pay $13M to settle whistleblower suit over cybersecurity](https://www.delawareonline.com/story/news/2026/11/05/ilc-dover-to-pay-13-million-to-settle-whistleblower-suit-over-cybersecurity/92625444007) - Delawareonline.com
- [New $13 Million Cybersecurity Settlement Highlights Evidence Risk for Federal Contractors - EIN Presswire](https://www.einnews.com/pr_news/954746014/new-13-million-cybersecurity-settlement-highlights-evidence-risk-for-federal-contractors) - EIN News