According to a regulatory filing with the SEC, Booz Allen Hamilton Holding Corporation (NYSE: BAH) has reached a significant settlement agreement with the U.S. Department of Justice (DOJ) and on behalf of the Defense Contract Management Agency to resolve a civil investigation. The investigation focused on certain aspects of the company's cost accounting and indirect cost charging practices spanning from April 1, 2011, to March 31, 2021.

As part of the settlement, Booz Allen Hamilton has agreed to pay $377.5M. The company expects to cover this amount using cash on hand and by drawing from its revolving credit facility. Notably, the company had already set aside a $350M reserve in anticipation of this settlement.

By finalizing this agreement, Booz Allen Hamilton will be released from any further civil or administrative monetary claims related to this case.

The decision to enter into this settlement agreement was aimed at avoiding prolonged litigation and its associated uncertainties and costs. Importantly, the agreement does not imply any admission of liability by Booz Allen Hamilton.

$BAH closed at $115.83 on Friday, down $0.42 (-0.36%)

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