False Claims Involving the E-Rate Program in Texas
Hewlett-Packard agreed to pay the United States over $16 million to settle a civil lawsuit alleging that the company violated the False Claims Act in connection with the Federal Communications Commission’s (FCC) E-Rate program, which uses funds collected from customers to provide Internet service to needy schools and libraries. The FCC alleged that contractors working with HP and other companies lavished gifts (including yacht cruises and Super Bowl tickets) on Dallas and Houston school district personnel between 2002 and 2005 in order to get inside information on and win contracts. Of the settlement amount, $7.4 million is attributable to the Dallas school district allegations, and $8.8 million is attributable to the Houston allegations. In settling, HP did not admit any wrongdoing or liability.
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- Contracting Party
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- Date of Settlement Announcement