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:

Microsoft in China

Tech Showcase

Samsung Sells Shares

Samsung Sells Shares

Samsung Group says to sell 4 units to Hanwha Group for $1.7 bln   Full Article 

HP Earnings

HP Earnings

HP fourth-quarter revenue drops on weak enterprise demand  Full Article 

Surveillance Saga

Surveillance Saga

U.N. committee spotlights 'highly intrusive' digital spying   Full Article 

Twitter Deal?

Twitter Deal?

Twitter in talks to buy Bieber-backed selfie app Shots - CNBC  Full Article 

Google in Europe

Google in Europe

United States says EU's Google case should not be politicised  Full Article 

Thanksgiving Ads

Thanksgiving Ads

Facebook video draws Thanksgiving ads from Macy's, others  Full Article 

Reuters India Mobile

Reuters India Mobile

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