Altegrity owner of Kroll Faces Litigation and 2015 Debt Maturities
February 19, 2014
The article titled Debt Maturities May Blow the Whistle on Altegrity on the Deal Pipeline explores the possibilities facing the Virginia based company. Altegrity is a private-equity owned background check company with the subsidiary US Investigations Services Inc. (USIS). The company was responsible for vetting both Edward Snowden and Aaron Alexis (the Washington Navy Yard shooter). The article explains,
“In a complaint filed on Jan. 22 in the U.S. District Court … the DOJ suggested penalties of $5,500 to $11,000 per violation of the firm’s quality review protocol for 665,000 cases, or about 40% of the cases Altegrity subsidiary, US Investigations Services Inc., has handled. On the low end of that spectrum, the damages could reach $3.7 billion. However, the fund manager noted that Altegrity could seek to settle the case for a much lower amount, curtailing…a lengthy litigation process.”
A USIS spokesperson defended the company with the statement that the allegations only refer to a small group of people over a short period of time. One looming factor mentioned by S&P analyst Brian Milligan are Altegrity’s 2015 debt maturities, which allow the company some wiggle room for negotiation. We should also note that is the company that has owned Kroll, the corporate security firm, since about 2007. Kroll has a search component acquired from Engenium in 2006.
Chelsea Kerwin, February 19, 2014
Sponsored by ArnoldIT.com, developer of Augmentext
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