The justice department of United States has confirmed that Hewlett Packard Company has consented to a payment of USD 55 million in order to compensate the federal government for the fraud. This is regarding the clearance of the claim made by the federal government in which it accused HP of paying inducements intentionally to the systems integrator enterprises who in exchange provided it with the references which would state that the federal establishments bought the devices manufactured by HP.

While this decides the claim made under the False Claims Act, this reimbursement also determines the claims that the contract entered into by HP with General Service Administration was incorrectly valued. GSA was aware of only partial information parted by HP during the discussions before the finalization of the deal.

The contract was one involving trade of computer hardware and software and also provided that HP should provide GSA with all the information regarding the manner in which its trade was conducted in the profitable market so as to enable the federal agencies to chalk out a reasonable price for buying equipment from HP which would be used by the government officials.