EMC Settles Government's Kickback Charges

Kara Reeder

Computerworld reports that EMC has coughed up $87.5 million to settle charges that it violated the federal Anti-kickback Act by giving kickbacks to consultants and overcharging the government for hardware and software.


The U.S. Department of Justice says:


The United States alleged that, by misrepresenting its commercial pricing practices, EMC fraudulently induced the General Services Administration (GSA) to enter into a contract with prices that were higher than they would have been had the information technology company not made false misrepresentations.


For its part, EMC still maintains its innocence:


EMC has always denied these allegations and will continue to deny any liability arising from the allegations made in this case. We're pleased that the expense, distraction and uncertainty of continued litigation are behind us.

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