Aon Report Details Growing D&O Risks from False Claims and Trade Secrets

Aon's D&O Insight – October 2025: False Claims Act and Trade Secret Risks examines how shifting regulatory priorities and enforcement trends are reshaping directors and officers (D&O) exposures. According to Aon, recent False Claims Act (FCA) and trade secret cases illustrate how enforcement actions and follow-on litigation are becoming increasingly intertwined with corporate governance and compliance obligations. 

Per the article, the FCA remains a central tool for addressing fraud against the US government, with private whistleblowers continuing to play a major role. Aon noted that recent actions under the Trump Administration reflect an expanded use of the FCA to advance political and regulatory objectives, including those related to diversity, equity, and inclusion (DEI); cyber security; and tariffs. 

According to Aon, the US Department of Justice (DOJ) has filed several high-profile FCA suits. One case involved a public insurance brokerage firm accused of accepting hundreds of millions of dollars in illegal kickbacks from health insurers between 2016 and 2021. The DOJ alleged that the firm misled Medicare beneficiaries and steered them toward high-commission plans. Following news of the enforcement action, the company's stock fell 19 percent, leading to a securities class action that alleged misleading statements. 

Per Aon, another FCA case targeted an American biotechnology company accused of misrepresenting the cyber security of its genomic sequencing systems sold to US government agencies. The DOJ alleged that the company's software failed to meet required cyber-security standards. The firm agreed to pay $9.8 million to resolve the allegations. 

Aon also cited a DOJ case involving a Canadian office furniture manufacturer accused of tariff evasion. The company allegedly submitted falsified import documentation between 2019 and 2023 to underpay US customs duties. The DOJ's mid-2025 intervention emphasized that tariff evasion and customs fraud remain key enforcement priorities under the FCA. 

According to Aon, trade secret litigation is also on the rise, particularly in cases involving former employees who join competitors. One recent example involved allegations that a former executive violated a noncompete agreement and misappropriated confidential information, including customer data and pricing strategies, to benefit a rival company. 

Per Aon, these developments underscore the expanding scope of FCA enforcement and the persistent threat of trade secret disputes. The firm cautioned that such risks can lead to follow-on litigation, including securities class actions, while coverage for these exposures may be limited under certain D&O policy exclusions. Aon said companies should proactively assess their D&O coverage to ensure preparedness for these evolving regulatory and competitive challenges.