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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 »

Hewlett-Packard Company

Alliance Benefits False Claims Act Lawsuit

Date: 04/12/2007 (Date of Filing)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Multiple Agencies

Contracting Party: Multiple Agencies

Court Type: Civil

Amount: $55,000,000

Disposition: Settlement

Synopsis: 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.