Booz Allen Hamilton Holding Corp. said it will pay $377.5 million under a settlement agreement with the US Department of Justice to settle a civil investigation related to its cost accounting.
The agreement contains no admission of liability by the company, Booz Allen said in a filing, noting that it agreed to the settlement “to avoid the delay, uncertainty and expense of protracted litigation.” The firm said it had previously recorded a $350 million reserve for possible exposure from the probe.
The pact covers the period from Apr. 1, 2011, to Mar. 31, 2021. The company didn’t provide details of the alleged conduct, other than to say the DOJ was acting for the Defense Contract Management Agency.
During a conference call in May, Chief Executive Officer Horacio Rozanski said the investigation was “into highly technical elements of our cost accounting and indirect cost charging practices with the US government.” The probe began in 2017 and the DOJ closed a criminal investigation of the matter in 2021.
