eldemar is providing some of the information. I'd add some color the i2 suit.
The fraud perpetrated by Palantir was actually so organized and so bad (they set up an entirely fake front company in another state), that the suing company asked the judge for the case to be tried under RICO rules...which are basically rules put in place to fight the mafia. The judge agreed that it qualified under the law (immediately tripling any damages that would have been awarded) and Palantir settled with i2 immediately after that and the case was dropped.
Word on the street is the settlement was for an almost 9 figure sum and Palantir immediately went into another fundraising round to cover the loss and sustain operations.
The employees (all senior execs) at the center of the fraud kept their jobs but didn't show their faces in public for a couple years (they had been acting as a de facto spokespeople during trade events). They're back in the public eye now.
Yes, that's correct, Palantir is currently run by people who's activities were qualified by a judge as falling under legal guidelines setup to fight the Mob.
You can say what you want about the big defense contractors, incompetence and lobbying and all that (which Palantir does in spades and has even gotten in trouble for not disclosing some lobbying deals) but mafioso they ain't.
Some more here: http://venturebeat.com/2011/02/16/palantirs-third-black-eye-...
http://www.law360.com/articles/225544/palantir-i2-settle-tra...
This isn't even touching the HBGary union busting scheme and the Bank of America anti-Wikileaks proposal. And other very anti-democratic activities.
I don't know what happened to the employee with the anti-Wikileaks deal, but the one with HBGary was the stuff of dystopian nightmares. The employee responsible was publicly terminated but actually it turns out was just sent away for a bit and then quietly either rehired or just turned back up to a job he never lost. Nobody would have ever known about this if Anonymous hadn't had a very public fight with the CEO of HBGary Federal and hacked their network to pull down some documents, revealing an ongoing 3-way partnership with Palantir).
http://www.dailykos.com/story/2013/06/23/1218189/-HBGary-Pal...
They appear to be offering a revolving door to high level government supporters who then later become "consultants" for the company. http://www.mausstrategicconsulting.com/topical-analysis-blog...
"such as former head of the National Counterterrorism Center Michael E Leiter who had said to himself “There’s Karp with his hair and his outfit—he doesn’t look like me or the other people that work for me,” before becoming a supporter and then consultant for Palantir"
and heavy lobbying (which explains some of the bizarre support they get in congress while the generals go blue in the face arguing against them)
"It has also been active in formal political lobbying, recruiting former senators John Braux and Trent Lott, (5) with its lobbying expenditures increasing steadily from 2010 to 2013 when its total annual investment exceeded $1.1 million"
more examples http://www.republicreport.org/2014/palantir-zach-wamp/
I've heard rumors that even the CIA is trying to distance themselves from them and find alternatives.