Hewlett-Packard Co. has agreed to pay $32.5 million to settle allegations under the False Claims Act that it overcharged the U.S. Postal Service for products between October 2001 and December 2010, the Justice Department said Friday.
The U.S. government alleged that despite a contract agreement, HP overcharged USPS by failing to comply with pricing terms of the contract, including a requirement that HP provide prices that were no greater than those offered to HP customers with comparable contracts.
According to the U.S. government, HP also made misrepresentations during the negotiation of the contract regarding its pricing and its plans to ensure it would provide the required “most favored customer pricing.”
The allegations were jointly investigated by the Postal Service, Office of the Inspector General and the Justice Department’s Civil Division. “The claims resolved by the settlement are allegations only and there has been no determination of liability,” the Justice Department said in a statement.