The settlement, announced by the Justice Department, stems from a mandate that requires federal agencies to purchase products either from the United States or from countries that have a trade agreement with the United States. When federal agencies purchased products from Samsung, they were under the pretense that said products were manufactured in South Korea or Mexico.
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However, while those countries have trade agreements with the United States, the Samsung products were manufactured in China, which does not have a full trade agreement with the States. This was revealed when a whistleblower, Robert Simmons, came forward to the Justice Department and revealed the specifics. As such, the Justice Department alleged that Samsung knowingly lied about where its products were made.
Samsung has yet to comment, with the Justice Department saying the settlement is not an admission of liability.
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