Hewlett Packard (HPQ) Pays $55 Million to Settle Kickback Charges

August 31, 2010, 6:00 AM

Hewlett-Packard Co. (NYSE: HPQ) on Monday agreed to pay $55 million to settle claims that it paid kickbacks to companies so they could to win U.S. government business the Justice Department said.

Monday’s announcement finalizes an agreement from earlier this month, where HP reached a settlement with the Justice Department where it would take a charge of 2 cents per share  in the third quarter to settle the claims.

The U.S Justice Department claims The computer giant paid money to influence systems integrator companies so they could recommend HP’s products to government agencies. HP denies any claims that it engaged in any illegal conduct.

Assistant Attorney General Tony West, head of the department’s civil division, said in a statement “Contractors must deal fairly with the government when doing business with federal agencies,”

“We believe it is in the best interest of our stakeholders to resolve the matter and move beyond this issue,” HP said in a statement.

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