HP Settles Probe into Contract Kickbacks

Hewlett-Packard announced yesterday that it has settled the probe into contract kickbacks without admitting any wrongdoing and paying the U.S. Justice Department money. Wait…if a kickback is giving someone money to make things go your way…what just happened here again?

The agreement resolves the department's three-year investigation into HP's GSA Multiple Award Schedule contract, as well as a civil suit filed in Arkansas in 2007. HP said the settlement would have a negative impact of two cents per share on its fiscal third quarter but did not did not update its guidance for the year or quarter.

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