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Violation Tracker Individual Record

Company: EMC Corporation
Current Parent Company: Dell Technologies
Penalty: $87,500,000
Year: 2010
Date: May 25, 2010
Offense Group: government-contracting-related offenses
Primary Offense: False Claims Act and related
Secondary Offense: kickbacks and bribery
Mega-Scandal: Healthcare Kickbacks
Violation Description: EMC Corporation paid the United States $87.5 million to settle a lawsuit alleging that the information technology company violated the False Claims Act and the federal Anti-kickback Act. Specifically, the United States had alleged that the company represented during contract negotiations that, for each government order under the contract, EMC would conduct a price comparison to ensure that the government received the lowest price provided to any of the company's commercial customers making a comparable purchase. According to the government's complaint, EMC knew that it was not capable of conducting such a comparison, and so EMC's representations during the negotiations as well as its subsequent representations to GSA that it was conducting the comparisons were false or fraudulent.
Level of Government: federal
Action Type: agency action
Agency: Justice Department Civil Division
Civil or Criminal Case: civil
HQ Country of Current Parent: USA
HQ State of Current Parent: Texas
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: electrical and electronic equipment
Specific Industry of Current Parent: computers
Source of Data: (click here)
Source Notes: If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.