Technology | Fri Aug 1, 2014 10:57pm IST

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

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)

Reuters Showcase

Micromax Stake

Micromax Stake

SoftBank-led group in talks to buy stake in Micromax - sources  Full Article 

Plane Crash

Plane Crash

Co-pilot appears to have crashed Germanwings plane on purpose, prosecutor says  Full Article 

Airwaves Auction

Airwaves Auction

Top three mobile operators spend $13.6 bln in airwaves auction  Full Article 

Twitter Video App

Twitter Video App

Twitter launches video streaming app Periscope  Full Article 

Yemen Attacked

Yemen Attacked

Yemeni leader Hadi leaves country as Saudi Arabia keeps up air strikes on Houthi rebels  Full Article 

FIFA Politics

FIFA Politics

FIFA taking the wrong approach to development, says Prince Ali   Full Article 

Downton Abbey

Downton Abbey

Downton Abbey to wind up after sixth season, producer says  Full Article 

Photo

Amazon Fashion

Indian designers will create new products for online shoppers: Amazon India fashion head  Full Article 

Australia Beat India

Australia Beat India

Smith shines as Australia down India to reach final  Full Article 

Reuters India Mobile

Reuters India Mobile

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

X