HP to pay $55 mn to settle kickback claims

SAN FRANCISCO - Technology giant HP has agreed to pay the US government $55 million to settle allegations that the company gave illegal kickbacks to other firms that recommended its products to government agencies, according to the Department of Justice.

In a statement, government officials hailed the settlement as a victory over contractors who failed to deal fairly with the government.

“As this case demonstrates, we will take action against those who seek to taint the government procurement process with illegal kickbacks,” said Department of Justice official Tony West in a statement.

The case stemmed from allegations first raised by two whistleblowers who came forward in 2004 to reveal details of how companies like HP, Sun Microsystems and Accenture paid each other “influencer fees” for recommending products to federal agencies. The Department of Justice filed charges in 2007, but HP denied any wrongdoing in its settlement.

“HP denies engaging in any illegal conduct in connection with these matters,” the company said in a statement. “We believe it is in the best interest of our stakeholders to resolve the matter and move beyond this issue.”