EMC pays $87.5 million to settle federal kickback case

-- EMC (NYSE: EMC) has shelled out $87.5 million to settle a Justice Department lawsuit that alleged EMC misrepresented its commercial pricing practices and engaged in a kickback scheme designed to influence government agencies in the purchasing process, according to sister site Enterprise Storage Forum.

"The lawsuit alleged that EMC misrepresented its commercial pricing practices and "fraudulently induced the General Services Administration (GSA) to enter into a contract with prices that were higher than they would have been had the information technology company not made false misrepresentations," the Justice Department said in a press release yesterday.

"The U.S. also charged that EMC engaged in "an illegal kickback scheme designed to influence the government to purchase the company's products. EMC maintained agreements whereby it paid consulting companies fees each time the companies recommended that a government agency purchase an EMC product.

"But an EMC spokesperson said, "EMC has always denied these allegations and will continue to deny any liability arising from the allegations made in this case. We're pleased that the expense, distraction and uncertainty of continued litigation are behind us."

Read the full story at Enterprise Storage Forum:

EMC Settles Kickback Charges for $87.5 Million

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This article was originally published on May 26, 2010