Maximus settles lawsuit, takes $10M charge
Source: by Jeff Clabaugh and Ben Hammer, Washington Business Journal - 2:43 PM EDT Monday, July 3, 2006
Maximus will take a $10 million charge in the fiscal third quarter because of a lawsuit it recently settled. The Reston-based company, which runs various programs for state and local governments, completed the settlement June 30. It didn't provide details of the size of the settlement or with whom it settled the case. Maximus (NYSE: MMS) officials weren't available for comment.
The suit, which was filed on behalf of Solarcom and Fleet Business Credit, accused the company of fraudulent guarantees of computer equipment leases signed by two former employees. The plaintiffs sued for damages of approximately $17.0 million.