Cisco Pays $8.6 million to Resolve Whistleblower's Claim

Cisco has agreed to settle a whistleblower's claim that it improperly sold video surveillance software with known vulnerabilities to US federal and state governments, marking the first payout on a False Claims Act case brought over failure to meet cybersecurity standards.

The settlement and underlying claim were unsealed on Wednesday, eight years after the initial legal complaint. Cisco paid $8.6 million to resolve the case, with most of that going to the federal government and 15 state buyers and more than $1 million going to the whistleblower, James Glenn.

"We are pleased to have resolved a 2011 dispute involving the architecture of a video security technology product," said Cisco spokeswoman Robyn Blum. "There was no allegation or evidence that any unauthorized access to customers' video occurred as a result of the architecture."

Source: Reuters