03 Mar 2009
The US Department of Justice (DoJ) has announced that it will launch an investigation into storage specialist EMC.
The move stems from allegations of kickbacks paid by the company to IT consultants while working on government projects. EMC is also accused of failing to disclose its pricing plans, and overcharging the government for contract work.
The allegations extend to projects the company worked on dating back as far as the 1990s. Two IT administrators have filed suit as whistleblowers on behalf of the government in Little Rock, Arkansas.
In a filing with the Securities and Exchange Commission, EMC denied any wrongdoing in the case.
"We have co-operated with the audit and the DoJ investigation, voluntarily providing documents and information, and have engaged in discussions aimed at resolving this matter without any admission or finding of liability on the part of EMC," the company wrote.
"We believe that we have meritorious factual and legal defences to the allegations raised and, if the matter is not resolved and proceeds to litigation, we intend to defend vigorously."
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