(NEW YORK) — The fallout from Edward Snowden’s leaks about national surveillance programs has affected his last employer, Booz Allen Hamilton, the 13th-largest federal contractor.
Shares in the publicly traded company dropped more than 2.6 percent Monday after Snowden revealed the day before that he worked for the National Security Agency as a private contractor with Booz Allen. The stock was briefly down by five percent during the day.
Investors are now worried that Booz Allen is not able to protect classified information because of Snowden’s leaks to The Guardian newspaper.
The credibility of the McLean, Va.-based company is on the line because the federal government, which provides Booz Hamilton with virtually all of its business, may be concerned that employees are not sufficiently vetted, given the Snowden incident.
Last year, the Air Force considered blacklisting the company’s office in San Antonio over a leak involving a former Air Force officer hired by Booz Allen related to “sensitive” non-public information regarding an upcoming Air Force contract.
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Madison Park, Keith Allen and Andreas Preuss, CNN