Technology giant Hewlett-Packard has agreed to pay some $55 million to settle charges that it paid illegal kickbacks to companies that recommended HP products and services to U.S. government agencies. The settlement seals the deal on a tentative agreement the company reached with the Justice Department earlier this month.
“HP denies engaging in any illegal conduct in connection with these matters,” the company said in an issued statement. “We believe it is in the best interest of our stakeholders to resolve the matter and move beyond this issue.”
The charges in the case go back to 2004, when whistleblowers at accounting firm Accenture and investment firm PriceWaterhouseCoopers files a complaint alleging HP had paid kickbacks—dubbed “influencer fees”—to have HP services and gear recommended for government contracts and agencies.
The settlement also wraps up claims dating back to 2002 involving a contract HP had with the General Services Administration to sell computer gear to federal agencies. In 2007, HP revealed that it had never disclosed information about how it conducted business in the private sector so the GSA could determine whether it was paying a fair price; this lead to allegations HP had engaged in deceptive pricing.
