DOJ’s Huntsville cybersecurity settlement sends message to defense contractors: Comply or pay
DOJ’s Huntsville cybersecurity settlement sends message to defense contractors: Comply or pay
Publish Date: 2026-07-02 08:00:00
Source Domain: 256today.com
A recent U.S. Department of Justice settlement involving a Huntsville defense contractor is sending a clear message to companies across the Defense Industrial Base: cybersecurity compliance is no longer based on the honor system.
The Justice Department announced that Huntsville-based LOGZONE Inc. agreed to pay $507,144 to resolve allegations under the False Claims Act that it knowingly failed to comply with required cybersecurity standards while performing two Department of the Navy contracts worth approximately $680,000.
Federal officials alleged that between May 2021 and March 2025, LOGZONE failed to implement required cybersecurity controls outlined in National Institute of Standards and Technology (NIST) Special Publication 800-171, despite certifying compliance as part of its government contracts. According to the DOJ, a Defense Contract Management Agency assessment found the company received a cybersecurity score of -170 on the NIST assessment scale, one of the lowest possible scores.
The settlement resolves allegations only, and there has been no determination of liability.
“Government contractors that obtain sensitive defense information in administering their contracts must follow required cybersecurity standards,” Assistant Attorney General Brett A. Shumate said in announcing the settlement.
U.S. Attorney Phillip W. Williams Jr. added that protecting sensitive defense information is critical to national security and said the enforcement action should remind contractors that compliance with federal cybersecurity requirements must remain a priority.
What is CMMC?
The case comes as the Department of Defense continues rolling out the Cybersecurity Maturity Model Certification (CMMC) program, a unified cybersecurity verification standard designed to protect sensitive unclassified information throughout the defense industrial base.
CMMC replaces years of contractor self-attestation by requiring companies doing business with the Pentagon to demonstrate…
