Dell Defeats False Claims Suit Alleging Hardware Vulnerabilities

A whistleblower failed to adequately allege that Dell Computer Corp. violated the False Claims Act by selling computer systems to the U.S. government that contained undisclosed security vulnerabilities known as “hardware trojans,” a D.C. federal court said.

Phillip M. Adams’ complaint failed for lack of materiality, because he didn’t allege that Dell was required to comply with federal technology security policies in order to receive payments, Judge Thomas F. Hogan of the U.S. District Court for the District of Columbia said Thursday.

The technology policies that Adams referenced don’t require defect-free products. They merely say that federal agencies should limit ...