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Contractor Whose Business Model Is Price Gouging the Pentagon Has Powerful Wall St. Backers | The Intercept

Contractor Whose Business Model Is Price Gouging the Pentagon Has Powerful Wall St. Backers | The Intercept

ON MARCH 21, first-term Congressman Ro Khanna sent a letter asking the Pentagon’s inspector general to investigate TransDigm, an aerospace supplier he accused of cornering the market on proprietary parts for military aircraft and then jacking up the prices.

The California Democrat charged that TransDigm operates as a “hidden monopolist,” to “enrich a few individual financiers who stand to benefit at the expense of our troops and weapons systems.”

The letter rebounded across Washington and Wall Street. TransDigm stock dropped over 10 percent in two days. The business press highlighted the story; The Huffington Post called TransDigm “The Martin Shkreli of defense contracting.”

Source: Contractor Whose Business Model Is Price Gouging the Pentagon Has Powerful Wall St. Backers