On September 5, 2017, U.S. District Judge Leonie M. Brinkema of the Eastern District of Virginia appointed Cohen Milstein Co-Lead Counsel, along with Robbins Geller Rudman & Dowd LLP to oversee Jeremey A. Langley, et a. v. Booz Allen Hamilton Holding Corporation, et al., a putative securities and investors class lawsuit. Cohen Milstein represents one of the lead plaintiffs: Uniformed Sanitationmen’s Association Local 831 Compensation Accrual Fund. The other lead plaintiffs is: Teamsters Locals Nos. 175 & 505 Pension Trust Fund.
On June 20, 2017 a putative securities and investors class lawsuit was filed on behalf of Jeremey A. Langley and other investors against Booz Allen Hamilton in U.S. District Court, Eastern District of Virginia.
The complaint alleges that Booz Allen, a U.S. management consulting firm, which purports to provide management and technology consulting services to business entities, including governments, including, substantially, the U.S. government, as well as certain officers and directors, made materially false and misleading statements about the company’s business, operational, and compliance policies in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 throughout the class period of May 19, 2016 to June 15, 2017.
Specifically, the complaint alleges, defendants made false and/or misleading statements and/or failed to disclose that: (i) Booz Allen engaged in improper accounting practices in its contracts with the U.S. government; (ii)
consequently, the company’s revenues derived from services provided to the U.S. government were inflated and unsustainable; (iii) discovery of the foregoing conduct would subject the company to heightened regulatory scrutiny, potential criminal sanctions, and jeopardize its business relationship with the U.S. government; and (iv) as a result of the foregoing, Booz Allen’s public statements were materially false and misleading at all relevant times.
On June 15, 2017, post-market, Booz Allen disclosed that on June 7, 2017, the company’s subsidiary Booz Allen Hamilton Inc. “was informed that the U.S. Department of Justice is conducting a civil and criminal investigation relating to certain elements of [its] cost accounting and indirect cost charging practices with the U.S. government.” On this news, Booz Allen’s share price fell $7.43, or 18.89%, to close at $31.90 on June 16, 2017. As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Lead Plaintiffs and other Class members, who purchased or otherwise acquired Booz Allen Securities at artificially inflated prices within the class period, suffered significant losses and damages.
Jeremey A. Langley, et a. v. Booz Allen Hamilton Holding Corporation, et al., Case No. 1:17-cv-00696-LMB-TCB, U.S. District Court, Eastern District of Virginia.