Shares in Booz Allen Hamlton are crashing after hours (down 13%) after releasing an 8-K admitting that the Department of Justice is investigating the NSA Contractor's direct and indirect charging practices.
In their 8K, they admit...
On June 7, 2017, Booz Allen Hamilton Inc. (the “Company”), a wholly owned subsidiary of Booz Allen Hamilton Holding Corporation, was informed that the U.S. Department of Justice is conducting a civil and criminal investigation relating to certain elements of the Company’s cost accounting and indirect cost charging practices with the U.S. government.
To date, our internal and external audit processes have not identified any significant deficiencies or material weaknesses, or identified any significant erroneous cost charging.
The Company is cooperating with the government in these matters and expects to bring them to an appropriate resolution.
As a reminder this is the company that Edward Snowden worked for, and as The Washington Post previously noted, the CEO desperately tried to distance himself from any reputational risk in 2013...
“I told our employees Mr. Snowden was on our payroll for a short period of time, but he was not a Booz Allen person and he did not share our values,” Shrader said.
“We cannot and will not let him define us."
It appears they have more than 'leaks' to worry about.