Argus Information & Advisory Services Settles DOJ Case for $37M Over Misused Government Data

Emma Grant

Argus Information & Advisory Services, a leading provider of defense and intelligence analysis, has agreed to pay $37 million to settle allegations that it misused data obtained under government contracts.

The settlement, which was announced on March 15, 2023, resolves a lawsuit brought by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) against the company. According to the DOJ, Argus obtained confidential data from government sources and used it to create proprietary products and services that it sold to clients.

The data, which included sensitive information about military and intelligence operations, was obtained through Argus’s contracts with various government agencies.

The SEC’s complaint alleged that Argus violated the Investment Company Act of 1940 by using the misappropriated data to create and market investment products without disclosing the source of the data to investors.

The SEC also claimed that Argus failed to disclose its use of the data in its filings with the SEC.Argus has denied any wrongdoing but has agreed to settle the case to avoid the costs and distractions of a prolonged legal battle. Under the terms of the settlement, Argus will pay $37 million to resolve the allegations.

The settlement marks the end of a long-running investigation into Argus’s business practices. The company has faced scrutiny from regulators and law enforcement agencies for several years over its use of government data. In 2020, Argus agreed to pay $10 million to settle similar allegations brought by the SEC.

The settlement is a significant blow to Argus, which has built its business on its ability to provide clients with high-quality intelligence and analysis. The company’s reputation has been tarnished by the allegations of misusing government data, and it remains to be seen how the settlement will impact its business going forward.

In a statement, Argus said it was pleased to have resolved the matter and looked forward to continuing to provide valuable services to its clients. However, the settlement is likely to raise questions about the company’s business practices and its ability to maintain the trust of its clients and regulators.

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