KCNF, together with co-counsel Tycko & Zavareei LLP, represented Rachel Tenney, a former Honeywell employee, in a False Claims Act whistleblower lawsuit that resulted in a settlement of more than $2 million with Honeywell Aerospace Inc.
The U.S. Department of Justice announced on September 1, 2026 that Honeywell Aerospace Inc. agreed to pay $2,042,518 to resolve allegations that it violated the False Claims Act by failing to comply with cybersecurity requirements in a contract with the U.S. Department of Defense. According to the DOJ, the settlement resolves allegations that from April 2020 through December 2023, a business unit of Honeywell International Inc. submitted false claims for payment by failing to comply with cybersecurity standards required under National Institute of Standards and Technology (NIST) Special Publication 800-171, as required by the underlying contract and applicable regulation. Honeywell Aerospace Inc. became a standalone public company on June 29, 2026, after operating as a business segment of Honeywell International Inc.
Ms. Tenney filed the lawsuit under the qui tam provisions of the False Claims Act, which allow private citizens with knowledge of fraud against the government to file suit on the government’s behalf and share in any resulting recovery.
“This settlement is a reminder that cybersecurity compliance is more than an IT issue. When a company tells the government its systems meet a required standard, that representation has to be accurate, and employees who see a gap between what’s claimed and what’s actually in place have a real role to play in holding contractors accountable,” said KCNF managing partner, Elaine Fitch.
The case is United States ex rel. Rachel Tenney v. Honeywell International Inc., Civil Action No. 3:22-cv-129 (W.D.N.C.). As is standard in False Claims Act settlements, the claims resolved are allegations only, and there has been no determination of liability. The resolution followed a coordinated investigation by the Department of Justice’s Civil Division, Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of North Carolina, and the Defense Criminal Investigative Service.