Hewlett-Packard (HP) has announced that it has agreed to settle a lawsuit by the US Department of Justice (DoJ) which accused the company of paying kickbacks to Accenture in exchange for government contract recommendations.
The settlement is sat to reduce its earning by 2 cents per share throughout the third quarter 2010, meaning that the company would have to pay around $47 million to the US government.
In 2007, the US Department of Justice had investigated a whistleblower lawsuit filed by Norman Rille and Neal Roberts against three IT companies - HP, Accenture and Sun Microsystems - accusing them of violating the False Claims Act and working together to secure kickbacks from government contracts.
"We believe it is in the best interest of our stakeholders to resolve the matter and move beyond this issue," HP said in a statement.
The company refused to elaborate on the decision and said that it neither refuted, nor admitted to the charges.