Embattled Background Investigation Firm Settles with Justice Department

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USIS, once the largest contractor conducting security clearance background investigations, and its parent firm Altegrity, have settled with the federal government, according to a recent court filing.

Last September the Office of Personnel Management ended its contracts with the investigation firm, following months of congressional scrutiny. The Department of Justice filed several complaints against the firm alleging the company filed incomplete investigations approximately 40 percent of the time, in at least 665,000 cases. The firm had also been found to be behind the controversial security clearance investigations conducted for Navy shooter Aaron Alexis and Edward Snowden.

The settlement would force both the Federal Government and Altegrity to drop its claims against the other. The government is suing for damages it alleges due to the falsification of investigations, and USIS claimed it was owed approximately $44 million in costs with closing up its investigation contracts. The proposed settlement will drop both claims, if approved by a bankruptcy judge.

The downfall of USIS set the stage for serious security clearance processing delays, which have only been exacerbated by the OPM breach.

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