CACI Intl Sues Insurance Co On Iraq-related Defense Costs

9 May 2008

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DOW JONES NEWSWIRES

CACI International Inc. (CAI) disclosed Friday in its quarterly report that it recently filed a lawsuit against its insurance carrier to seek reimbursement of the defense costs it has incurred related lawsuits arising from the company's services in Iraq.

In 2004, one of CACI's employees was identified in a U.S. Army report as being connected to allegations of abuse of Iraqi detainees at the Abu Ghraib prison facility. The Arlington, Va., provider of information-technology services to the federal government was sued by some Iraqis claiming that they or their family members were abused at Abu Ghraib.

CACI said its defense costs to date for the Iraq-related matters are in excess of $7 million.

The insurance company previously filed a lawsuit against CACI, seeking a declaration that its policies provided no coverage for the Iraq-related matters. That lawsuit was voluntarily dismissed in 2004, according to the CACI's quarterly report.

Shares of CACI were trading Friday afternoon at $50.95, down 75 cents.

-Denise Jia, Dow Jones Newswires; 202-862-1359; denise.jia@dowjones.com