Reuters logo
U.S. Congressman asks DoD to investigate TransDigm's practices
March 21, 2017 / 7:41 PM / 6 months ago

U.S. Congressman asks DoD to investigate TransDigm's practices

March 21 (Reuters) - U.S. Congressman Ro Khanna asked the Department of Defense for an investigation into the business practices of aircraft components supplier TransDigm Group Inc , sending the company’s shares down as much as 9.7 percent on Tuesday.

In a letter dated March 20 to Glenn Fine, the acting inspector general of the U.S. DoD, Khanna requested for a probe into the company “for potential waste, fraud and abuse in the defense industrial base”.

Khanna, who is a member of the House Armed Services Committee, wrote that recent reports indicate TransDigm may be operating as a "hidden monopolist" and more information must be made available to the public on the company's business practices. (bit.ly/2njH3vI)

Short-seller Citron Research had issued a critical report on TransDigm in January.

Shares of the company which has fallen nearly 4.4 percent since the beginning of the year, touched a one-month low of $214.99 on Tuesday.

TransDigm did not immediately respond to a request for comment. (Reporting by Aishwarya Venugopal in Bengaluru; Editing by Shounak Dasgupta)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below