Manipulating Sales of Printing Supplies
HP paid $6 million to settle U.S. Securities and Exchange Commission (SEC) charges it misled investors by concealing efforts to boost sales of printing supplies in 2015 and 2016 in an effort to meet quarterly sales and earnings targets. The SEC found that HP regional managers used incentives to accelerate, or “pull in,” sales they expected to materialize in later quarters. The SEC also found that managers in one region sold steeply discounted supplies to distributors known to resell HP products outside their own territories, “cannibalizing” sales from local distributors and violating company policy. HP settled without admitting or denying the SEC’s charges.
- Misconduct Type
- Enforcement Agency
- Contracting Party
- Court Type
- Date of Settlement Announcement