An investigation into EMC Corp. led to allegations regarding fee arrangements with system integrators and other companies doing business with EMC. Together, these companies allegedly violated the terms of sales agreements with the United States. The settlement allows EMC to continue selling data storage equipment to federal agencies. EMC agreed to make a 1 cent change to its fourth quarter earnings-per-share to reflect the charge. According to Reuters, EMC will pay a total $87.5 million to settle the U.S. probe.
To report Government contracting fraud and other violations of the False Claims Act, contact Frohsin & Barger.