Booz Allen Hamilton Accused of Defrauding the U.S. Government

A securities class action has been filed against Booz Allen Hamilton for alleged violations of the Securities Exchange Act of 1934 by Booz Allen Hamilton's officers and directors between May 18, 2016 and June 15, 2017. According to the complaint, Booz Allen Hamilton repeatedly assured investors that the company was in compliance with the government's contract rules and regulations and that its recent growth was sustainable, when in fact it was improperly overcharging the government for certain expenses by submitting false claims for reimbursement and by engaging in employee time and attendance fraud. This misconduct is currently under investigation by the U.S. Department of Justice, and could result in the company's inability to receive payment on existing contracts or bid on new contracts, which would virtually put Booz Allen Hamilton out of business since it receives nearly all of its revenue from the government.