Altegrity Grapples with Debt and Lawsuit in Wake of Snowden Leak
January 9, 2015
The article on Go Local Prov titled Providence Equity May Lose Hundreds of Millions as Altegrity Faces Seizure in Snowden Fallout reports on the ramifications of the Snowden case on Altegrity and its owner, Providence Equity. Charges are being brought against US Investigative Services, LLC (USIS), to which Altegrity is the parent company. The charges against USIS revolve around improper vetting of Snowden and other people who handled classified documents. The article explains,
“The Snowden case… may seem like a remote affair, involving a lone security analyst based in Hawaii who leaked National Security Agency files in Hong Kong, now lives in limbo in Moscow, and has President Obama and the Washington policy establishment grappling with the fallout. The Post’s Josh Kosman reported Wednesday of this week that since the refinancing, there was a cyber-attack on USIS, and “then Washington in September decided not to renew its roughly $300 million annual contract.”
This was not only a loss for the company, but the government as well. The article does not explain who is conducting the 21,000 a month background checks now that USIS has been fired. It does offer the final note that Altegrity’s massive debt of $70 million will be due mostly in January of 2015, and that the company most likely does not have that sort of cash on hand.
Chelsea Kerwin, January 09, 2014
Sponsored by ArnoldIT.com, developer of Augmentext
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