HP to pay 55 million dollars in kickbacks case

Aug 30, 2010
Hewlett-Packard has agreed to pay 55 million dollars to settle claims the US computer giant defrauded the US government, the Justice Department announced Monday.

Hewlett-Packard has agreed to pay 55 million dollars to settle claims the US computer giant defrauded the US government, the Justice Department announced Monday.

The settlement resolves allegations that HP paid kickbacks to systems integrator companies in return for recommendations that US agencies buy HP products, the department said in a statement.

It also resolves claims that a 2002 contract between HP and the General Services Administration, the US government's chief procurement body, was defectively priced because HP provided incomplete information to the GSA.

The 2002 contract involved sales of computer equipment and software to federal agencies by the California-based company, the world's largest computer maker.

"Contractors must deal fairly with the government when doing business with federal agencies," US assistant attorney general Tony West said.

"As this case demonstrates, we will take action against those who seek to taint the government procurement process with illegal kickbacks," West said.

HP said on August 2 it had negotiated a deal with US prosecutors to settle the case but did not disclose the amount of the settlement.

Earlier Monday, HP announced it had been awarded a contract worth up to 800 million dollars to supply computing equipment to the US Air Force.

HP also announced Monday its board of directors has authorized spending up to 10 billion dollars to buy back stock in the company, whose share price has slumped since chief executive Mark Hurd abruptly resigned this month.

HP is currently waging a battle with US computer maker Dell for firm 3PAR.

HP on Friday said it would increase its offer for 3PAR to two billion dollars or 30 dollars per share in cash, up 11 percent from Dell's 27 dollars per share offer.

HP's share price has shed approximately 15 percent since Hurd's surprise resignation on August 6 in the wake of a sexual harassment charge that uncovered subterfuge with company expenses.

HP shares gained 1.47 percent to 38.56 dollars on Wall Street on Monday but were down 0.13 percent at 38.51 dollars in after-hours trading.

Explore further: On Kickstarter, everyone wants to be 'Staff Pick'

add to favorites email to friend print save as pdf

Related Stories

HP reaches settlement with DOJ in kickbacks case

Aug 03, 2010

(AP) -- Hewlett-Packard Co. said Monday that it has agreed in principle to settle a lawsuit by the Department of Justice, which alleged that HP and other technology companies paid kickbacks to Accenture PLC in exchange for ...

HP profits lower, to cut nearly 6,400 workers

May 19, 2009

US computer giant Hewlett-Packard reported a 17-percent fall in quarterly net profit on Tuesday and said it plans to cut two percent of its workforce, or nearly 6,400 workers, over the next year.

3Par calls HP $30 bid 'superior'; Dell mulls reply

Aug 28, 2010

(AP) -- Data storage company 3Par Inc. says its board has determined that Hewlett-Packard Co.'s $2 billion, $30-per-share takeover bid is superior to a rival offer from Dell Inc., but Dell said Saturday it was mulling over ...

HP blasts back with new bid for 3Par, besting Dell

Aug 26, 2010

(AP) -- Hewlett-Packard Co. has again raised its bid for 3Par Inc. above an offer from rival Dell Inc., suggesting that the little-known data-storage maker could be worth more with one of the PC companies' ...

HP renames EDS, now HP Enterprise Services

Sep 23, 2009

US computer giant Hewlett-Packard announced on Wednesday that business services titan EDS, which it acquired a year ago, has been renamed HP Enterprise Services.

Recommended for you

Underfire Uber ramps up rider safety

9 hours ago

Uber is ramping up driver background checks and other security measures worldwide after the smartphone-focused car-sharing service was banned in New Delhi following the alleged rape of a passenger.

Sony cancels NKorea parody film release after threats

10 hours ago

Hollywood studio Sony Pictures on Wednesday abruptly canceled the December 25 release date of "The Interview," a parody film which has angered North Korea and triggered chilling threats from hackers.

Sprint accused of billing for unwanted services

14 hours ago

(AP)—Federal regulators are accusing Sprint Corp. of illegally billing its wireless customers hundreds of millions of dollars in charges for text message alerts and other services that they didn't order.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.