Booz Allen pays $377.5M to settle U.S. investigation over charges

Booz Allen Hamilton Holding said it entered into a settlement agreement with the United States of America, acting through the United States Department of Justice and on behalf of the Defense Contract Management Agency, to resolve the previously disclosed civil investigation related to certain elements of the company’s cost accounting and indirect cost charging practices from April 1, 2011 through March 31, 2021. Under the terms of the agreement, Booz Allen has agreed to pay to the United States $377.5M, which the company expects to pay with cash on hand and by drawing on its revolving credit facility. The company had previously recorded a $350M reserve relating to the investigation and had previously disclosed that it believed the range of reasonably possible loss in connection with the investigation to be between $350M and $378M Upon the United States’ receipt of the amount, the United States will release the company from any civil or administrative monetary claims for the covered conduct under the civil False Claims Act. Booz Allen said it entered into the agreement “to avoid the delay, uncertainty and expense of protracted litigation.” The settlement agreement contains no admission of liability by the company.