Shares of Booz Allen Hamilton sank as much as 13 percent in after-hours trading after the government services firm revealed in a regulatory filing it was the subject of a federal civil and criminal probe in connection with its finances.
Last year, the company derived 97 percent of its revenue from U.S. government business. One of its major customers is the Pentagon, including all four branches of the military, as well as national intelligence agencies. The IRS also is a customer of Booz Allen.
In its Securities and Exchange Commission filing late Thursday, Booz Allen said it was informed June 7 by the U.S. Department of Justice that it was the subject of a probe “relating to certain elements of the company’s cost accounting and indirect cost charging practices with the U.S. government.”
According to the company’s 8-K filing, “To date, our internal and external audit processes have not identified any significant deficiencies or material weaknesses, or identified any significant erroneous cost charging.”
Booz Allen added that it was “cooperating with the government in these matters and expects to bring them to an appropriate resolution.”
The company declined to comment beyond the filing.
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