April 20, 2007 9:44 AM PDT

Court documents posted in fed's Sun, HP kickback lawsuit

by Declan McCullagh
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Yesterday we reported that the U.S. Justice Department had joined a case against Hewlett-Packard, Sun Microsystems and Accenture alleging that they paid unlawful kickbacks in federal purchases.

The complaint alleges that the defendants are using affiliate relationships "to enrich themselves through a kickback scheme" in violations of the False Claims Act. The Justice Department is asking for an injunction, civil penalties, and attorneys' fees, and did not act against Dell and EDS, though they are named in the existing suit.

We've posted the documents here:

Order dismissing claims against Microsoft (1-page PDF)
Justice Department's False Claims Act complaint (106-page PDF)
Order saying Justice Department has not acted against Dell, EDS (2-page PDF)
Justice Department's complaint against Sun Microsystems (31-page PDF)

For the record, the companies deny the charges, and there's clearly much more to the story than the government's allegations. Sun told us the Justice Department complaint follows a lengthy audit, the results of which it has not seen: "Sun has fully cooperated with the audit process, as it routinely does, and welcomes the opportunity to review the audit results as soon as permitted and to address the resulting claims in a fair and impartial forum."

HP said: "HP is proud to partner with the government and is confident its business practices are appropriate. We plan to vigorously defend this action and look forward to demonstrating that HP has done nothing wrong."

Declan McCullagh, CNET News' chief political correspondent, chronicles the intersection of politics and technology. He has covered politics, technology, and Washington, D.C., for more than a decade, which has turned him into an iconoclast and a skeptic of anyone who says, "We oughta have a new federal law against this." E-mail Declan.
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Add a Comment (Log in or register)
NO DELL AND EDS BECAUSE
by pchesels April 20, 2007 12:17 PM PDT
What most people don't know is that this is very slighted by the government. God forbid that they go after DELL and EDS because they are the primary contractor for the US Navy and Marine Corps networks (EDS) and primary computer provider for the NMCI contract (DEll). This contract is worth BILLIONS. So much lying and deceit in the government today. Most people who pushed the NMCI contract through are working for companies like EDS and their subcontactors after they snowed the taxpayers into buying into something that costs at least 3 times what it used to be so they could secure themeselves lucrative jobs after retiring from the military. What a scam to the american people.
Reply to this comment
No Dell & EDS
by tketcher April 23, 2007 5:44 AM PDT
One has to wonder who you might work for. You are making a slanderous blanket statement without the slightest hint of factual reasoning behind your assertions.
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