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

Published 03/21/2017, 04:15 PM
Updated 03/21/2017, 04:20 PM
© Reuters.  U.S. Congressman asks DoD to investigate TransDigm's practices

(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.

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.

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