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About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Ranking: 16
Hewlett-Packard Company
Hewlett-Packard is an information technology company that operates in more than 170 countries around the world. Founded in 1939, HP has revenue totaling over $113 billion and ranked 14th in the 2008 Fortune 500. Its portfolio includes printing, personal computing, software and IT infrastructure.
Federal Contract $: $2942.4m
Total Number of Instances: 8
Total Misconduct dollar amount: $ 741.5m
- Annual Report
- Hoovers Profile
- Lobbying Information
- Political Activity
- Press Page
- SEC 10K
- Contracting Information
- Website
Instances of Misconduct
1. BSkyB Limited v. Hewlett-Packard (Negligent Misrepresentations)
The British High Court ruled that Electronic Data Systems (EDS), which became a unit of Hewlett-Packard in 2008, made false representations about a customer service technology contract with pay-TV operator British Sky Broadcasting Limited (BSkyB). EDS agreed in 2000 to provide customer service technology for BSkyB's help centers. Two years later, BSkyB terminated the contract due to alleged poor performance and completed the project itself. BSkyB claimed it was fraudulently induced to award EDS the contract. In June 2010, it was reported that Hewlett-Packard agreed to pay £318 million (US$465 million) to settle the lawsuit.... more»
2. False Claims Involving the E-Rate Program in Texas
Hewlett-Packard agreed to pay the United States over $16 million to settle a civil lawsuit alleging that the company violated the False Claims Act in connection with the Federal Communications Commission’s (FCC) E-Rate program, which uses funds collected from customers to provide Internet service to needy schools and libraries. The FCC alleged that contractors working with HP and other companies lavished gifts (including yacht cruises and Super Bowl tickets) on Dallas and Houston school district personnel between 2002 and 2005 in order to get inside information on and win contracts. Of the settlement amount, $7.4 million is attributable to the Dallas school district allegations, and $8.8 million is attributable to the Houston allegations. In settling, HP did not admit any wrongdoing or liability.... more»
3. Boardroom Leak Investigation (SEC)
The Securities and Exchange Commission settled administrative charges against Hewlett-Packard for failing to disclose the reasons for a director’s abrupt resignation during HP’s investigation into leaks of confidential information about board meetings to the media. The SEC found that several months before the public revelation of the company’s leak investigation, an HP director objected to the company’s handling of the matter and resigned from the board in May 2006, yet HP failed to disclose the reasons for his resignation as required by federal securities laws. The SEC charged HP with violating the public reporting requirements of the Securities Exchange Act of 1934. Without admitting or denying the SEC’s findings, HP consented to an order that it cease and desist from committing or causing violations of these provisions. See related Hewlett-Packard instance, “Boardroom Leak Investigation (California).” See related Hewlett-Packard instances, “Boardroom Leak Investigation (California)” and “Boardroom Leak Investigation (Stockholder Derivative Lawsuits).”... more»
4. Boardroom Leak Investigation (Stockholder Derivative Lawsuits)
Stockholder derivative lawsuits filed in California and Delaware on behalf of HP stockholders sought to recover damages for alleged breach of fiduciary duty as a result of the activities of the boardroom leak investigation (see Hewlett-Packard instances “Boardroom Leak Investigation (California)” and ”Boardroom Leak Investigation (SEC”).) In December 2007, HP and the plaintiffs in the California and Delaware derivative actions entered into an agreement to settle those lawsuits. Under the terms of the settlement, HP agreed to continue certain corporate governance changes until December 31, 2012 and to pay the plaintiffs' attorneys' fees ($3.8 million for California counsel and $2.5 million for Delaware counsel).... more»
5. Cornell University v. HP (Patent Infringement)
Cornell University and the Cornell Research Foundation, Inc. alleged that HP's PA-RISC 8000 family of microprocessors, and servers and workstations incorporating those processors, infringed a patent assigned to Cornell Research Foundation. In May 2008, a jury returned a verdict in favor of the plaintiffs in the amount of $184 million.... more»
6. Alliance Benefits False Claims Act Lawsuit
The U.S. Department of Justice joined Norman Rille and Neal Roberts’ civil qui tam lawsuit alleging violations of the False Claims Act and the Anti-Kickback Act of 1986 by HP and other technology companies. The companies are accused of participating in an industry-wide practice of using partnership and alliance programs to make improper payments and cause the submission of false claims in connection with government IT contracts. The Department of Justice alleges an industry-wide scheme where companies provided millions of dollars in improper payments, known as “alliance benefits,” to each other, causing the federal government to make payments to the companies which they were not entitled to receive under the contracts. In August 2010, HP settled with the Department of Justice for $55 million.... more»
7. Boardroom Leak Investigation (California)
California’s attorney general investigated allegations that Hewlett-Packard unlawfully spied on its own employees and directors to discover the source of leaks of confidential information about board meetings to the media. In December 2006, HP entered into an agreement with the attorney general by which it did not admit wrongdoing and paid $14.5 million. See related Hewlett-Packard instances, “Boardroom Leak Investigation (SEC)” and “Boardroom Leak Investigation (Stockholder Derivative Lawsuits).”... more»
8. Failure to Immediately Report Defect in Lithium-Ion Batteries
Hewlett-Packard agreed to pay the U.S. Consumer Product Safety Commission (CPSC) a $425,000 civil penalty to resolve allegations that HP knowingly failed to timely report to CPSC that certain lithium-ion battery packs contained a defect or created an unreasonable risk of serious injury or death. The batteries at issue, used in HP, Toshiba, and Dell notebook computers, can overheat, posing a fire and burn hazard to consumers. The CPSC alleged that by September 2007, HP knew of the occurrence of more than 20 such incidents, at least two of which resulted in injuries, but did not notify the CPSC until July 2008. (Federal law requires notifying the CPSC immediately – within 24 hours – after learning that a product contains a defect that poses a safety hazard.) In agreeing to the settlement, HP denied the CPSC’s allegations.... more»
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