EMC settles federal kickback lawsuit for $87.5 million

EMC spokesman Patrick Cooley told National
Journal his company “has always denied and will continue to deny
any liability arising from
the allegations made in this case. We’re pleased that the expense,
distraction and uncertainty of continued litigation are behind us.”

The lawsuit falls under the qui tam, or whistleblower, provision of the False Claims Act, which allows a private party to file action on behalf of the United States and receive a portion of the settlement. The law allows the government to recover up to three times the amount of its losses, plus civil penalties.

The government only joins a qui tam case if they find merit to the charges. In this instance, the investigation was conducted by the U.S. attorney’s office in Little Rock, Ark. Justice’s civil division, GSA’s Office of the Inspector General (OIG), and other IGs joined the case before the Justice Department. 

“Companies should not keep charging higher prices to the Government when
costs go down.  The American taxpayers deserve a better deal,” said GSA
Inspector General Brian Miller.
“This case is another demonstration of the value of OIG audits.”