Booz Allen Hamilton says DOJ investigating its accounting practices
Booz Allen Hamilton Holding Corp <BAH.N> said the U.S. Department of Justice (DOJ) was investigating some of its cost accounting and indirect cost charging practices with the government, sending its shares down 12 percent after the bell.
The Justice Department informed a unit of the consulting firm, Booz Allen Hamilton Inc, of the investigation earlier this month, the company said in a filing on Thursday.
The firm said its audit processes had not identified any material weaknesses or "significant erroneous cost charging". (http://bit.ly/2rB0v5C)
Booz Allen Hamilton, which earns billions of dollars a year contracting with U.S. intelligence agencies, said it was cooperating with the government.
The company came under scrutiny last year after it learned for the second time in three years that an employee working under contract with the National Security Agency (NSA) had been charged with stealing classified information.
Booz Allen Hamilton had also employed Edward Snowden, who exposed vast domestic and international surveillance operations by the NSA by leaking a trove of secret files to news organizations in 2013. REUTERS