Hewlett-Packard Corporation announced on November 11, 2010 that it has agreed to pay $16.25 million to settle allegations made in multiple whistleblower lawsuits that the technology giant defrauded the Schools and Libraries Program of the Universal Service. This program, also known as the “E-Rate Program,” provides discounted telecommunication services to schools and libraries so they can deploy technology into the classroom. The case, which was filed as a qui tam action in 2005, resolves allegations that Hewlett-Packard subverted and rigged the competitive bidding processes for E-Rate contracts. This was accomplished by illegally providing gratuities, including meals, trips, and event tickets to school district representatives in Dallas and Houston, Texas.
