Law Offices of Howard G. Smith Announces Investigation of SAIC, Inc.

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that it is investigating potential claims against SAIC, Inc. (“SAIC” or the “Company”) (NYSE:SAI) and its Board of Directors concerning possible breaches of fiduciary duties by the Company or its fiduciaries. SAIC provides scientific, engineering, systems integration and technical services and solutions to the U.S. Department of Defense, the U.S. Department of Homeland Security, other U.S. Government civil agencies, the intelligence community, and customers in selected commercial markets. Since 2000, the Company has developed and implemented an automated timekeeping and workforce management system (“CityTime”) for certain agencies of the City of New York.

The investigation concerns whether the Company or its fiduciaries breached their fiduciary duties by allegedly overbilling the City for the time recorded by the CityTime program manager. In December 2010, the U.S. Attorney’s Office for the Southern District of New York filed a criminal complaint against six individuals, including principals of staffing firms that provided staff to the CityTime program as subcontractors to SAIC. On February 10, 2011, a federal grand jury indicted four of the individuals and added another individual defendant. On May 27, 2011, a criminal complaint was filed against the former CityTime program manager alleging he conspired to defraud the City into extending and overpaying for the CityTime project and personally received kickbacks totaling $5.6 million.

Subsequently, on June 2, 2011, the Company disclosed that its own internal investigation could not validate all the time recorded to the CityTime program by its program manager. Then, on October 24, 2011, the Company disclosed it had removed certain members of the CityTime management team from their positions and terminated their employment.

If you are a shareholder of SAIC, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at [phone], Toll Free at [phone], or by email to [e-mail], or visit our website at http://www.howardsmithlaw.com.