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Georgia Tech Faces DOJ Lawsuit Over Alleged Lapses in Cybersecurity for Defense Contracts

Georgia Tech faces DOJ lawsuit over alleged lapses in cybersecurity for Defense contracts, including fraud, breach of contract, and negligence.

 

Researchers at the Georgia Institute of Technology, who have received over $1 billion in Defense Department contracts, are facing scrutiny for allegedly failing to secure their computers and servers, citing that doing so was too “burdensome.” Since 2013, the Department of Defense has mandated that any contractor handling sensitive data provide “adequate security” on their systems. 

However, at Georgia Tech, laboratory directors reportedly resisted developing a security plan and opposed IT department efforts to implement basic antivirus and anti-malware software. Two IT department employees filed a whistleblower lawsuit, leading the Department of Justice (DOJ) to join the case against the university and the Georgia Tech Research Corporation (GTRC), the nonprofit entity managing government contracts. The lawsuit claims that the Astrolavos Lab at Georgia Tech delayed creating and implementing a security plan, as required by the government contracts. 

When a plan was finally created in 2020, it did not cover all relevant devices, according to the DOJ. Furthermore, the lab, whose mission is to address the security of emerging technologies critical to national security, did not install or update antivirus or anti-malware tools until December 2021. The lab allegedly fabricated compliance reports sent to the Defense Department. The reasons behind these alleged security lapses reportedly stem from campus politics. The DOJ complaint suggests that researchers bringing in substantial government funding were viewed as “star quarterbacks,” using their influence to resist compliance with federal cybersecurity mandates. 

Between 2019 and 2022, GTRC secured more than $1.6 billion in government contracts, with over $423 million in 2022 alone. The whistleblowers, Christopher Craig and Kyle Koza, filed the suit under the False Claims Act, allowing them to receive a portion of any recovered funds. Georgia Tech and GTRC face nine counts, including fraud, breach of contract, negligence, and unjust enrichment, with the DOJ seeking damages to be determined at trial. The DOJ stressed the importance of cybersecurity compliance by government contractors to safeguard U.S. information against threats from malicious actors. 

Meanwhile, Georgia Tech expressed disappointment at the DOJ’s filing, arguing it misrepresents the university’s culture and integrity, claiming that the government itself had indicated that the research did not require cybersecurity restrictions. Georgia Tech has vowed to dispute the case in court, maintaining that there was no data breach or leak and reaffirming its commitment to cybersecurity and collaboration with federal agencies.  

This case is notable given recent cybersecurity threats faced by major universities, such as the University of Utah and Howard University, where ransomware attacks have resulted in significant financial losses.
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