Booz Allen Hamilton stock fell on Monday after the company announced an ongoing Department of Justice accounting investigation could take years.
McLean, Virginia-based Booz Allen said June 7 the U.S. Department of Justice was conducting both a civil and criminal investigation relating to the company’s cost accounting and indirect cost charging practices with the U.S. government.
It has also said its own internal and external audit processes have not found any significant deficiencies and identified any significant accounting errors.
During a quarterly earnings conference call Monday, Booz Allen Chief Executive Horacio Rozanski said the timing of the DOJ investigation remains uncertain, but it is “more likely to be years than months,” he said.
Booz Allen is cooperating with the DOJ.
Rozanski said the investigation has neither had an impact on customer relationships nor its ability to recruit and retain talent.
“We’re staying close to our clients as we always do and keeping lines of communication open to all stakeholders, including employees, strategic partners, regulators and investigators,” he said.
Booz Allen has brought on 930 new employees in the last 12 months, and has more than 23,000 employees worldwide.
Booz Allen reported second quarter revenue of $1.49 billion, up 5 percent from a year earlier, and forecast revenue growth this year of as much as 7 percent.
Read the full article on: Booz Allen stock takes hit amid multi-year DOJ investigation – WTOP