Email
Password
Remember meForgot password?
    Log in with Twitter

article imageBooz Allen Hamilton shares drop after employee leak goes public

By Leigh Goessl     Jun 11, 2013 in Business
Shortly after Booz Allen Hamilton employee Edward Snowden stepped forward as the contractor who leaked information last week about the NSA's secret surveillance program, the company's stocks took a dip.
Yesterday, shares of Booz Allen Hamilton dropped after Edward Snowden, a contractor working for the company in a position at the NSA, admitted on Sunday he was the person who leaked information last week about PRISM, a secret U.S. government electronic surveillance program.
By late morning Monday, shares took a four percent dip, to $17.28, reported NBC News.
There seemed to be some level of recovery during the day. According to the Associated Press (courtesy WTOP News), shares had dropped 2.6 percent and was valued at $17.54 by the day's close.
Booz Allen is one of the many companies operating in the Washington area that caters to both government and corporate needs. A substantial amount of the McLean, Virginia-based company's contracts are with the U.S. government.
Bloomberg News reported some analysts say this leak puts the company's reputation at risk. The report also noted 99 percent of the company's revenue comes from contracts with the government.
NSA whistleblower Edward Snowden:  I don t want to live in a society that does these sort of things
NSA whistleblower Edward Snowden: "I don't want to live in a society that does these sort of things"
Screengrab Guardian
Booz Allen released a statement which confirmed 29-year-old Snowden was an employee. The company said he had been employed with their firm for less than three months and had been working in Hawaii.
"News reports that this individual has claimed to have leaked classified information are shocking, and if accurate, this action represents a grave violation of the code of conduct and core values of our firm. We will work closely with our clients and authorities in their investigation of this matter," the company's statement, dated June 9, said.
Snowden had previously worked at the NSA for different contractors over the past four years, according to The Guardian.
He was earning about $200,000 a year, reported the Los Angeles Times. Snowden was reported to be in Hong Kong, but after checking out of a hotel, his whereabouts are currently unknown.
Experts are analyzing how this could impact Booz Allen's future. Some say it could hurt the company's credibility, depending on what information arises, while others feel it may not have been the company's fault.
At time of opening on the New York Stock Exchange (NYSE), Booz Allen's stock dropped about 1 percent after the 9:30 a.m. opening of the market. At 9:40 a.m., the stock was at $17.35 and down 1.08 percent.
More about booz allen, booz allen hamilton, Shares, employee leak, edward snowden
More news from
Latest News
Top News