Cisco settles dodgy price claim for $52m

 

Latest US DOJ scalp.

Cisco and Westcon Group North America have paid US$48 million ($52 million) to the US government to end claims they fudged pricing for Cisco products under federal agency contracts.

The US Department of Justice (DOJ) had claimed the two omitted information during negotiations which led to defective pricing for its products. 

The settlement stemmed from a 2004 lawsuit launched in the State of Arkansas by whistleblowers Norman Rille and Neal Roberts, who alleged major technology vendors were providing kickbacks to influence government deals. 

Last week Hewlett-Packard agreed to pay US$55 million to settle similar claims for contracts it had secured in 2002. 

The DOJ alleged that HP had paid kickbacks to system integrators to encourage them to recommend its products to agencies. 

The US government began investigating Oracle in July over deals it struck between 1998 and 2006.The DOJ has alleged that Oracle failed to extend private sector pricing to federal agencies.

In May EMC paid US$87.5 million to settle similar claims over its failure to deliver commercially competitive pricing.

The storage company admitted it never had the ability to make comparisons between commercial and government pricing and was also alleged to have paid kickbacks to consultants.

And in 2007 IBM and PriceWaterhouseCoopers together paid US$5.2 million to settle claims stemming from the same lawsuit. 

Copyright © iTnews.com.au . All rights reserved.


Cisco settles dodgy price claim for $52m
 
 
 
Top Stories
Westpac committed to core banking plan
[Blog post] Now with leadership.
 
The True Cost of BYOD - 2014 survey
Twelve months on from our first study, is BYOD a better proposition?
 
Photos: Unboxing the Magnus supercomputer
Pawsey's biggest beast slots into place.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
What is delaying adoption of public cloud in your organisation?







   |   View results
Lock-in concerns
  30%
 
Application integration concerns
  3%
 
Security and compliance concerns
  27%
 
Unreliable network infrastructure
  9%
 
Data sovereignty concerns
  22%
 
Lack of stakeholder support
  3%
 
Protecting on-premise IT jobs
  4%
 
Difficulty transitioning CapEx budget into OpEx
  3%
TOTAL VOTES: 1166

Vote