The information technology company EMC Corporation has paid the United States $87.5 million to settle allegations that it violated the False Claims Act and federal Anti-Kickback Act.
The United States alleged that EMC fraudulently caused the General Services Administration (GSA) to enter into a contract with overly high charges due to misrepresentations the company made. The government further alleged that EMC engaged in a fraudulent kickback scheme to influence the government to purchase the company’s products by paying consulting companies fees each time the companies recommended a government agency buy an EMC product.
The investigation of the kickback scheme was initiated by a False Claims Act lawsuit filed under its qui tam provision.
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