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EMC Corporation Pays $87.5 Million In Settlement of Fraud Allegations

May 25, 2010

According to the Department of Justice, EMC corporation has paid $87.5 million to settle a False Claims Act case against it. As previously reported by fraudblawg, the DoJ contends that EMC made misrepresentations to the Government Services Administration in negotiating a contract. EMC allegedly purported to make certain assurances that GSA would be given a competitive price when, in fact, EMC knew those assurances to be worthless. The DoJ further alleged that EMC paid kickbacks to independent agencies in exchange for thier recommendation that GSA buy EMC’s products and services. The FCA action was commenced in 2003 by a qui tam whistleblower.

To report federal procurement fraud, contant Frohsin & Barger.

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