Defense contractor Booz Allen Hamilton has agreed to pay $377 million to settle a long-standing Justice Department lawsuit alleging that the Northern Virginia-based company overcharged the U.S. government to help cover losses in other areas of its business, federal authorities announced Friday.
The resolution, coming six years after prosecutors filed the charges, represents one of the largest financial settlements for a defense company under the federal False Claims Act, officials said.
“This settlement, which is one of the largest procurement fraud settlements in history, demonstrates that the United States will pursue even the largest companies and the most complex matters where taxpayer funds are alleged to have been pilfered,” U.S. Attorney Matthew M. Graves for the District of Columbia said in a statement.
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A related federal criminal investigation into the company was closed in 2021 without charges, while a separate probe from the Securities and Exchange Commission in the matter remains open.
Details in the case had remained under court seal until Friday. But Booz Allen Hamilton officials had publicly disclosed the federal probe in 2017, stating that investigators were examining “highly technical elements of the company’s cost accounting and indirect cost charging practices with the U.S. government.”
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