Booz Allen to pay $377.5 million in settlement over past billing practices

Booz Allen Hamilton Holding Corp. (BAH) said late Friday it has agreed to a $377.5 million settlement with the Justice Department to end a previously disclosed investigation related to the government contractor's past charging practices. Booz Allen said in a filling that the probe was connected to "certain elements of the company's cost accounting and indirect cost charging practices" from April 2011 through March 2021. The company said it will pay the government using cash on hand and also drawing on its revolving credit facility. Booz Allen had recorded a $350 million reserve related to the investigation and had expected the possible loss to be between $350 million and $378 million. "The company entered into the settlement agreement to avoid the delay, uncertainty and expense of protracted litigation" and the agreement contains no admission of liability, Booz Allen said. Shares of Booz Allen were flat in the extended session Friday after ending the regular trading session down 0.4%.

-Claudia Assis

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

07-21-23 1638ET

Copyright (c) 2023 Dow Jones & Company, Inc.