Phoenix-based Honeywell Aerospace to pay $2M for allegedly violating False Claims Act

Honeywell Aerospace Inc., based in Phoenix, has agreed to pay around $2 million to resolve allegations that the company is liable under the False Claims Act for failure to comply with cybersecurity requirements in a U.S. Department of Defense contract, according to the Justice Department.

The corporation provides aerospace products and solutions to government and commercial customers.

The allegations came from a whistleblower, Rachel Tenney, who filed a lawsuit under the False Claims Act, which allows private citizens to sue on behalf of the government and receive a portion of any recovery settlement.

Tenney alleged a business unit of Honeywell “submitted false claims for payment by failing to comply with cybersecurity requirements specified in National Institute of Standards and Technology Special Publication 800-171” from April 2020 through December 2023. Compliance with the specified institution was required by the contract and regulation.

“Government contractors that obtain defense information in administering their contracts must follow required cybersecurity standards,” Brett A. Shumate, assistant attorney general of the Justice Department’s Civil Division, said in a news release. “The Justice Department will continue to investigate potential violations of these cybersecurity requirements to protect this critical information.”

The exact settlement is $2,042,518, and Tenney, a former employee of Honeywell Aerospace, will receive $375,823 as her share of the allotment.

The lawsuit settlement was the result of a coordinated effort between the Department of Justice Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of North Carolina and the Defense Criminal Investigative Service.

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