A Huntsville, Alabama, defense contractor will pay more than half a million dollars to resolve federal allegations that it failed to maintain required cybersecurity protocols while working on U.S. Navy contracts. LOGZONE Inc. agreed to the $507,144 payout to settle its liability under the False Claims Act.

Cybersecurity Protocols

According to federal prosecutors, the company knowingly submitted false claims for payment on two separate Navy contracts while failing to implement mandatory data security controls. The security gaps were uncovered during an assessment by the Defense Contract Management Agency (DCMA). Investigators checked LOGZONE’s compliance with the National Institute of Standards and Technology (NIST) Special Publication 800-171, which dictates how government contractors must protect sensitive information.

Department of Justice officials stated that the missing safeguards, which persisted from May 2021 to March 2025, could have allowed outside threats to exploit the system or steal sensitive defense information. “Government contractors that obtain sensitive defense information in administering their contracts must follow required cybersecurity standards,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.

Original reporting: Tampa Free Press — read the source article.