H-P Pays US $55 Million to Settle Kickback Probe

The U.S. Justice Department said Monday that Hewlett-Packard HPQ has agreed to pay $55 million to settle claims that it defrauded the General Services Administration and other federal agencies by getting kickbacks for recommendations. The settlement resolves allegations under the False Claims Act that the technology company knowingly paid fees to systems integrator companies in return for their recommendation to federal agencies to purchase H-P products. The agreement also resolves claims that a 2002 contract with the GSA was defectively priced because H-P provided incomplete information during negotiations. “Contractors must deal fairly with the government when doing business with federal agencies,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “As this case demonstrates, we will take action against those who seek to taint the government procurement process with illegal kickbacks.” To read the rest, head over to FOX Business.