Northrop Grumman Faces Criminal Probe of Pension Accounting (1)

The US Department of Justice has issued a criminal subpoena to defense contractor Northrop Grumman Corp. seeking information about the company’s calculation of pension expenses.

The aerospace and defense company received a subpoena on Dec. 9 focusing on its financial and cost accounting controls, it said Thursday in its 10-K.

The company has been facing questions on those issues from the Defense Contract Management Agency since 2019. The agency said in 2020 that assumptions the company used from 2013 to 2019 were potentially not compliant with Cost Accounting Standards, regulations that govern cost accounting requirements for government contracts.

Northrop Grumman ...