The DOJ has secured two significant settlements, including one with Illumina Inc. for $9.8 million over cybersecurity violations, marking a pivotal move towards enforcing cybersecurity compliance within the healthcare sector and private equity investments.

Target Information

The Department of Justice (DOJ) has recently made significant strides in its efforts to enforce cybersecurity compliance through the False Claims Act (FCA). On July 31, 2025, two groundbreaking settlements were announced, underscoring the DOJ’s commitment to hold organizations accountable for cybersecurity vulnerabilities, particularly in the healthcare sector. One of the settlements involved Illumina Inc., a major player in genomic sequencing, while the other was with Gallant Capital Partners LLC and its portfolio company, Aero Turbine Inc.

The settlement with Illumina Inc. was notable due to its substantial amount of $9.8 million, addressing allegations that the company sold genomic sequencing software with serious cybersecurity flaws. These allegations were brought forth by a whistleblower, who claimed that Illumina's products compromised HIPAA-protected data, allowing unauthorized access and modifications by everyday users.

Industry Overview

The healthcare industry has been increasingly targeted by cyber threats, raising concerns over data and patient safety. As healthcare organizations digitize records and implement innovative technologies, the risk of cyberattacks b