Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management
    • PC Hardware
    • Storage

    HP to Pay $55 Million to Settle Federal Kickback Allegations

    By
    Jeff Burt
    -
    September 1, 2010
    Share
    Facebook
    Twitter
    Linkedin

      Hewlett-Packard will pay a $55 million fine to settle a federal investigation into allegations that the vendor and other companies paid kickbacks for government contracts.

      Officials with HP, the world’s top PC vendor, announced Aug. 2 that an agreement in principle had been reached with the Department of Justice, and estimated that the settlement would be around $50 million. The DOJ confirmed this week that HP’s fine will be $55 million.

      The allegations were levied under the federal False Claims Act. Investigators said that between 2001 and 2006, HP paid as much as $3 million to system integrators in hopes of gaining favorable treatment in government contracts.

      The allegations first surfaced when officials with system integrators Accenture and PricewaterhouseCoopers filed whistleblowers’ lawsuits in 2004 against Accenture, HP and Sun Microsystems, all for allegedly soliciting payments or making those payments-or “influencer fees”-for government technology contracts.

      The DOJ joined the lawsuit against all three companies in 2007.

      In a statement, Assistant Attorney General Tony West said the lawsuit was a warning to other companies doing business with the federal government.

      “As this case demonstrates, we will take action against those who seek to taint the government procurement process with illegal kickbacks,” West said. “Contractors must deal fairly with the government when doing business with federal agencies.”

      At the time that they announced a settlement had been reached, HP officials said that the agreement did not amount to an admittance of guilt.

      “HP denies engaging in any illegal conduct in connection with these matters,” the company’s statement read. “HP has agreed to a settlement with the Department of Justice, without any admission of wrongdoing, in order to resolve the allegations in full.”

      The settlement also brings to a close another complaint against HP filed in 2002 that claimed the vendor, in a contract with the GSA (General Services Administration), had misled the agency regarding the pricing of hardware systems and software by providing incomplete information during negotiations.

      The cases against Accenture and Sun-now part of Oracle-reportedly are ongoing.

      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×