HP pays $55m to end kickbacks case

 

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By Stewart Mitchell

Posted on 31 Aug 2010 at 11:01

HP has agreed to pay $55 million to end a probe into allegations that it paid kickbacks to influence contracts awarded by the US Government.

After the company hinted earlier this month that it was willing to settle the case, the Justice Department has now agreed to cut a deal over allegations that HP defrauded the Government by paying other companies to recommend its services.

The payment relates to a 2007 claim from the Justice Department, brought following a similar private complaint against the company in 2004.

“HP has exploited the trust the Government has reposed in HP to act with honesty and candour, to provide accurate, complete and current cost and/or pricing data and to act without conflicts of interest, and has wrongfully used its alliance relationships to enrich itself,” the Justice Department complaint stated.

“Such kickbacks are provided by HP to its alliance partners in return for influencing and providing favourable treatment on Government procurements so as to obtain contracts or subcontracts with the Government.”

HP said the payment did not amount to an admission of guilt or any illegal conduct, but reflected the company's best interests in "moving on".