Hewlett-Packard to pay $32.5 million to settle USPS pricing case

WASHINGTON Fri Aug 1, 2014 10:57pm IST

A Hewlett-Packard logo is seen at the company's Executive Briefing Center in Palo Alto, California January 16, 2013. REUTERS/Stephen Lam/Files

A Hewlett-Packard logo is seen at the company's Executive Briefing Center in Palo Alto, California January 16, 2013.

Credit: Reuters/Stephen Lam/Files

Related Topics

Stocks

   

WASHINGTON (Reuters) - Hewlett-Packard Co will pay $32.5 million to resolve allegations it overcharged the U.S. Postal Service, the U.S. Department of Justice said on Friday.

The computer maker did not comply with pricing terms on a contract with the USPS between 2001 and 2010, including a requirement that it charge prices no greater than those offered other HP customers with comparable contracts, the Justice Department said.

"We will continue to ensure that when the government purchases commercial products, it receives the prices to which it is entitled," Stuart Delery, who heads the Justice Department’s civil division, said in a statement.

HP did not admit liability in the settlement.

A spokeswoman for the company said HP is "happy to find a mutually acceptable resolution" to the matter and "values its ongoing relationship" with the USPS.

In May, the USPS reported a net loss for the quarter of $1.9 billion, as first-class mail volume continued to tumble and lawmakers remained at odds over providing any financial relief.

The agency at that time said its liabilities stood at $64 billion, exceeding its assets by $42 billion.

(Reporting by Aruna Viswanatha; Editing by Doina Chiacu and Paul Simao)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Deal Talk

Reuters Showcase

Shopping Plans

Shopping Plans

Yahoo in talks to buy ad service BrightRoll - TechCrunch.  Full Article 

Data Breach

Data Breach

Staples says investigating possible payment card data breach.  Full Article 

Eavesdropping Agency

Eavesdropping Agency

Outgoing UK spy chief rejects mass surveillance claims.  Full Article 

Fat Paycheck

Fat Paycheck

New Microsoft CEO Nadella's pay tops $80 mln with big stock awards.  Full Article 

Access to Information

Access to Information

GT Advanced nears deal over Apple secrecy - lawyer.  Full Article 

Cyber Attack

Cyber Attack

China-backed hackers may have infiltrated Apple's iCloud - blog.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage