Gabe Scannapieco Provides Takeaways From $9.8 Million Whistleblower Settlement in Law360 Article

AGG Life Sciences co-chair Gabe Scannapieco was quoted in a Law360 article discussing the repercussions of the recent $9.8 million settlement of a False Claims Act (“FCA”) case involving Illumina Inc., a biotech company accused of violating cybersecurity standards.

The case serves as a significant example of the government’s increased willingness to use the FCA to crack down on cybersecurity flaws, and as a “warning to the entire healthcare industry, not just device manufacturers,” Gabe said.

While the FCA is a powerful weapon against defrauding the government, litigation has been slow to ramp up, and some of the first cases to be resolved involved defense contractors instead of life sciences companies. That may be changing, however, with the Illumina case serving as a major turning point.

Gabe, a former assistant director at the U.S. Department of Justice Consumer Protection Branch, explained that the government has pursued a number of cases that center on misrepresenting the adequacy of cybersecurity measures, detailing that it is the lack of security, not a breach, that has driven recent enforcement actions.

No matter the focus of scrutiny, the key to avoiding FCA claims is a proactive strategy.

To read the full article, please click here (subscription required).