HP to pay 55 million dollars as a settlement to the US fraud charges

HPHewlett Packard has decided to shell out 55 million dollars as a conclusion to its contravene in the link to the US government contracts.

The computer giant HP was accused of paying other companies to recommend its product to the government buyers.

The chief procurement body of the government, GSA entered in to the contract with HP in the year 2002.

It has been the highest settlement figures of its kind achieved by the US Department of Justice ever.

These claims were firstly filed in a lawsuit in the year 2004 by two whistleblowers. This settlement also involves the allegations of 2002 that a contract over the computer software and equipment was wrongly priced as the firm HP provided wrong and incomplete information to the GSA.

A spokesman for the US Depart of Justice said the government would always take strict action against the companies trying to dent the government rules and contract in the future also. He has said that the companies needed to deal fairly while doing business with the federal agencies.