Tuesday, June 01, 2010

EMC Corp. settles False Claims Act suit

EMC Corp., a maker of data storage machines, has agreed to pay the federal goverment $87.5 million to settle allegations that it violated the False Claims Act and the Anti-kickback Act.
The suit alleged that EMC represented during contract negotiations that it would conduct price comparisons to ensure that the government received the lowest price although it knew it was not capable of doing such a comparison. The U.S. also alleged that EMC paid kickbacks to consulting companies each time the companies recommended that a government agency purchase an EMC product.
The suit began as a qui tam compaint.