Hewlett-Packard Agrees to Pay $32.4M to Settle USPS Allegations

0
Hewlett-Packard Agrees to Pay $32.4M to Settle USPS Allegations
1588877 / Pixabay

Hewlett-Packard Company (NYSE:HPQ) agreed to pay $32.5 million to settle the overcharging allegations of the U.S. Postal Service (USPS), according to the Department of Justice (DOJ).

USPS allegations against Hewlett-Packard

The USPS accused Hewlett-Packard Company (NYSE:HPQ) of breaching the pricing terms of its contract between 2001 and 2010 including the requirement at it must “provide prices that were no greater than those offered to HP customers with comparable contracts.”

Gates Capital Returns 32.7% Tries To Do “Fewer Things Better”

Gates Capital Management's Excess Cash Flow (ECF) Value Funds have returned 14.5% net over the past 25 years, and in 2021, the fund manager continued to outperform. Due to an "absence of large mistakes" during the year, coupled with an "attractive environment for corporate events," the group's flagship ECF Value Fund, L.P returned 32.7% last Read More

In addition, the USPS alleged that Hewlett-Packard Company (NYSE:HPQ) misrepresented the pricing and plans during the negotiations of the contract to ensure that it would provide the required most-favored customer pricing.

The DOJ’s Civil Division investigated the allegations together with the USPS and the Office of the Inspector General. According to the Justice Department, the settlement resolves the allegation only, and there has been” no determination of liability” on the part of Hewlett-Packard Company (NYSE:HPQ).

In a statement, Stuart F. Delery, Assistant Attorney General, Civil Division of the DOJ said,

“Protecting the federal procurement process from false claims is central to the mission of the Department of Justice. We will continue to ensure that when the government purchases commercial products, it receives the prices to which it is entitled.”

On the other hand, Thomas Frost, Special Agent in Charge, Major Fraud Investigations Division (MFID), Postal Service Office of Inspector General said, “The Postal Service and the public must have complete confidence in the procurement process, and MFID will continue to work diligently to make that happen.”

USPS financial performance

The USPS reported a net loss of $1.9 billion in May, bringing its total loss for the fiscal year to $3.2 billion. The government postal service also warned that it reached its $15 billion credit limit last year, and defaulted on $11.1 payment obligations. USPS also expected to default additional $5.6 billion payments this September.

At the time, USPS CFO Joe Corbett emphasized that the agency’s continuing losses and almost $50 billion obligations demonstrate the need for immediate legislative reform that would provide them the autonomy to execute the Five-Year Plan and return to profitability.

Updated on

Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
Previous article Google Literally Scrapping Their Barges
Next article Global X GURU Index ETF Celebrates 2 YR Anniversary With Strong Returns

No posts to display