HP pays $32.5 million to settle defective pricing claims in Postal contract

by Ben Vernia | August 1st, 2014

On August 1, the Department of Justice announced that Hewlett-Packard Co. had agreed to pay $32.5 million to settle allegations that the technology company provided inaccurate pricing information in negotations for a U.S. Postal Service contract, and then overcharged the agency for goods purchased under the agreement. According to DOJ’s press release:

The Justice Department announced today that Hewlett-Packard Co. (HP) has agreed to pay $32.5 million to resolve allegations under the False Claims Act that HP overcharged the U.S. Postal Service (USPS) for products between October 2001 and December 2010. HP is a manufacturer and vendor of information technology products and services headquartered in Palo Alto, California.

* * *

The United States alleged that under a contract between HP and the USPS, HP overcharged USPS by failing to comply with pricing terms of the contract, including a requirement that HP provide prices that were no greater than those offered to HP customers with comparable contracts. The United States also alleged that HP made misrepresentations during the negotiation of the contract regarding its pricing and its plans to ensure it would provide the required most favored customer pricing.

Leave a Reply

Recent Posts

Recent Comments