GOVERNMENT FRAUD: EMC PAYS $87.5 MILLION TO SETTLE FALSE CLAIMS ACT CASE

EMC Corporation of Hopkington Massachusetts has agreed to pay the government $87.5 million to settle a lawsuit filed under the whistleblower provisions of The False Claims Act. The government alleged that the company had said it would conduct price comparisons to assure that the government got the lowest price of any commercial customer. However it did not do so. It was also alleged that EMC engaged in illegal kickbacks by paying consulting companies fees each time they recommended that the government agency purchase an EMC product.