News

Booz Allen Hamilton Settles Investigation with US Justice Department

1 Mins read

Booz Allen Hamilton Holding Corp. (BAH) has reached a settlement agreement of $377.5 million with the US Justice Department, bringing an end to a previously disclosed investigation into the government contractor’s past charging practices.

The investigation focused on specific aspects of the company’s cost accounting and indirect cost charging practices, spanning from April 2011 to March 2021, according to a filing made by Booz Allen. The settlement amount will be paid by the company using its available cash reserves and drawing on its revolving credit facility.

To cover potential losses resulting from the investigation, Booz Allen had already set aside $350 million in reserves. The expected loss was estimated to fall between $350 million and $378 million. However, by entering into the settlement agreement, the company intends to avoid the potential drawbacks of prolonged litigation. It should be noted that the agreement does not imply any admission of liability on the part of Booz Allen.

The news had no immediate impact on Booz Allen’s stock price, as shares remained unchanged during the extended trading session following a 0.4% decline in regular trading hours.

Conclusion

Booz Allen Hamilton Holding Corp. has concluded its settlement with the US Justice Department, putting an end to the investigation surrounding the company’s past charging practices. Despite the financial implications, Booz Allen aims to move past this chapter swiftly by avoiding protracted litigation.

Related posts
News

Unexpected Stock Market Rally

2 Mins read
Despite mixed expectations and original justifications falling apart, the stock market rally continues to soar, reaching new highs in various sectors. Let’s…
News

Analyst Sees Opportunity in DraftKings Stock

2 Mins read
A roughly 10% pullback in DraftKings Inc.’s stock following last week’s earnings report has caught the attention of analysts. Barclays’ Brandt Montour…
News

Bloomin' Brands Inc. Fourth-Quarter Report

1 Mins read
Despite a lower fourth-quarter profit, Bloomin’ Brands Inc. (BLMN) managed to exceed analyst estimates with its adjusted earnings thanks to a strong…

Leave a Reply

Your email address will not be published. Required fields are marked *

32 − 28 =