EMC AGREES TO SETTLE FALSE CLAIMS ACT CASE FOR $87.5 MILLION
EMC, a data storage company, has agreed to pay $87.5 million to settle a False Claims Act case alleging that EMC has a fee arrangement with system integrators and other companies with which it has partnered when selling products to the federal government.
The suit, which originally was filed by two whistleblowers, also claims the company paid kickbacks to resellers who pushed EMC products to federal agencies. This lawsuit is related to an ongoing set of lawsuits Justice has joined against major IT firms, including Cisco, Sun Microsystems, Microsoft and Hewlett-Packard. All of the suits were brought by the same whistleblowers, Norman Rille and Neal Roberts.
The False Claims Act (qui tam) lawsuit was originally was filed by two whistleblowers, Norman Rille and Neal Roberts, claimed EMC paid kickbacks to resellers who pushed EMC products to federal agencies. This whistleblower lawsuit is related to an ongoing set of lawsuits against major IT firms, including Cisco, Sun Microsystems, Microsoft and Hewlett-Packard.