Cisco to Pay $8.6M to End Cybersecurity False Claims Case (1)

Cisco Systems Inc. agreed to pay $8.6 million to settle a whistleblower’s claims that the company violated the False Claims Act by providing the U.S. and various states with video surveillance systems with security flaws.

Cisco will pay $2.6 million to the federal government, and up to $6 million to several states, attorneys for whistleblower James Glenn announced. A share also will go to the whistleblower.

Glenn’s case is the first cybersecurity whistleblower case ever successfully litigated under the False Claims Act, according to Constantine Cannon LLP, Glenn’s counsel. The settlement spotlights the possible risks companies may face when dealing...