Hewlett-Packard pays $32.5 Million for overbilling U.S. Postal Service

The Justice Department announced today that Hewlett-Packard Co. (HP) has agreed to pay $32.5 million to resolve allegations under the False Claims Act that HP overcharged the U.S. Postal Service (USPS) for products between October 2001 and December 2010. HP is a manufacturer and vendor of information technology products and services headquartered in Palo Alto, California.

The United States alleged that under a contract between HP and the USPS, 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.ΠThe United States also alleged that HP 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.

This matter was jointly investigated by the U.S. Postal Service, Office of the Inspector General and the Department of Justice’s Civil Division. The claims resolved by the settlement are allegations only and there has been no determination of liability.

The action was brought by a whistleblower who is expected to receive over$6.5 million as the False Claims Act allows private citizens with information in fraud on the government to collect a percentage of what the government collects as a result of the information.

Jeffrey Newman represents whistleblowers