ANDOVER, Mass., Aug. 13, 2009 (GLOBE NEWSWIRE) -- Dynamics Research Corporation (Nasdaq:DRCO), a leading provider of innovative management consulting, engineering, technology and information technology services and solutions to federal and state governments, today announced that DRC, the Department of Justice, and the United States Attorney's Office, Boston, MA have executed a settlement agreement avoiding any further litigation of issues arising from events which took place in the 1990's. The Department of Justice filed its case against the Company in October 2003. The settlement involves DRC's admission of liability solely for breach of contract, payment of $15 million to the government and dismissal with prejudice of all other claims against DRC.
The claims against DRC arose out of wrongful acts in the 1990's committed by two former rogue employees, who concealed their schemes from DRC and acted for their own personal benefit. The government prosecuted them criminally in 2000 with DRC cooperating with the criminal investigation. DRC neither knew about nor benefitted from their former employees' unlawful conduct, nor did DRC itself submit any false invoices or receive or pay any kickbacks.
The Company previously reported on this matter and recorded the $15 million charge in 2008 financial results. The Company is pleased to have reached the long anticipated conclusion of this decade old matter.
About Dynamics Research Corporation
Dynamics Research Corporation (DRC) is a leading provider of mission-critical technology management services and solutions for government programs. DRC offers forward-thinking solutions backed by a history of excellence and customer satisfaction. Founded in 1955, DRC is a publicly held corporation (Nasdaq:DRCO) and maintains more than 25 offices nationwide with major offices in Andover, Massachusetts and the Washington, D.C. area. For more information please visit our website at www.drc.com.
Safe harbor statements under the Private Securities Litigation Reform Act of 1995: Some statements contained or implied in this news release, may be considered forward-looking statements, which by their nature are uncertain. Consequently, actual results could materially differ. For more detailed information concerning how risks and uncertainties could affect the company's financial results, please refer to DRC's most recent filings with the SEC. The company assumes no obligation to update any forward-looking information.