HP Settles Claim
Hewlett Packard Co (HP) has agreed to settle claim that it defrauded the federal government by paying $ 55 million, disclosed the US Justice Department.
The matter pertains to the allegations that HP knowingly paid kickbacks or “influence fees” in order to recommend its products to federal agencies.
The settlement will also resolve claims that HP’s contract with General Service Administration in 2002 was defectively priced due to furnishing incomplete information.
That HP paid kickbacks was first made public by whistle blowers Norman Rille and Neal Roberts in a lawsuit filed in Arkansas in 2004.
In the other matter pertaining to GSA, HP was required to inform GSA how it conducted business in the market in order to enable GSA to negotiate a fair price for government customers. However, after HP informed GSA contracting officials that it might not have complied with all applicable provisions of the contract, a audit was conducted which concluded that the contract was defectively priced.