HP takes charge to settle DOJ kickbacks case

The company has settled accusations that it made improper payments to win US government contracts

Hewlett-Packard has reached a settlement with the U.S. Department of Justice over allegations that HP paid kickbacks to systems integrators in order to help it secure government contracts, HP said on Monday.

As a result of the settlement, HP expects to take a one-time charge of about US$0.02 per share against its earnings for the third quarter, the company said.

The DOJ said in 2007 that it had joined three whistleblower suits alleging that HP, Accenture and Sun Microsystems improperly solicited and provided payments for technology contracts with U.S. government agencies starting in the late 1990s.

HP allegedly paid more than $3 million to systems integrators between 2001 and 2006 in exchange for favorable treatment on government contracts, according to DOJ filings.

The lawsuits were originally filed in 2004 by Norman Rille, who was then a senior manager with Accenture, and Neal Roberts, a partner at PricewaterhouseCoopers.

On Monday, HP said its settlement with the DOJ also resolves the complaints in the case filed by Rille. As part of the settlement, HP admits to no wrongdoing. The settlement must be approved by the court, the DOJ and other agencies.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags governmentlegalU.S. Department of Justice

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?