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H-P Pays $32.5 Million To Settle Overbilling Charges

Computer and communications equipment maker Hewlett-Packard, which offers communications infrastructure and billing services to the media industry, has agreed to pay $32.5 million to resolve allegations by the Justice Department that the Palo Alto-based company overbilled the Postal Service for almost a decade for information technology products and services.

Justice alleged that H-P did not hold a most-favored customer pledge not to charge the Post Office more than comparable customers, and misrepresented pricing during negotiations.

“We will continue to ensure that when the government purchases commercial products, it receives the prices to which it is entitled," said a attorney general Stuart Delery.