Guidehouse reaches agreement to settle U.S. Department of Justice's civil investigation in New York State

WASHINGTON, June 17, 2024 /PRNewswire/ -- Guidehouse has reached a final agreement to pay $7.6 million to settle the U.S. Department of Justice's civil investigation related to a qui tam relator's complaint concerning Guidehouse's support of the New York State Emergency Rental Assistance Program ("ERAP"). The ERAP provided federally funded rental assistance to New Yorkers impacted by the COVID-19 pandemic.

The settlement agreement does not include any admission or acknowledgement of liability by Guidehouse. Guidehouse believes that its conduct in connection with the ERAP contract was at all times lawful and appropriate, and Guidehouse specifically rejects any assertion that its actions amounted to a breach of contract or a false claim. The United States intervened in the relator's case for the limited purpose of settlement. 

Guidehouse is exceptionally proud of its work on the New York ERAP contract. In the course of only four weeks, it stood up an end-to-end program from design to staffing and technical infrastructure deployment of over 1200 workers to support the processing of rental applications for some of New York's most vulnerable citizens. Ultimately, billions of dollars of relief funding were disbursed to the citizens of New York.

Our management and board understand the U.S. Department of Justice's concerns around cybersecurity, and we support their focus on such issues. While we disagree with the merits of this matter, we nevertheless considered the amount of money and time the company has expended, and the additional resources needed to take the case to conclusion in court and decided this settlement agreement made business sense. The resolution of this matter will allow the company to remain focused on serving the State of New York and our other valuable customers.

About Guidehouse

Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 16,000 professionals in over 55 locations globally. Guidehouse is led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global economies. For more information, please visit guidehouse.com.

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Cecile Fradkin [email protected]

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