Canada Questions Invoices from HP

Hewlett-Packard Co. said the Canadian government was refusing to pay some bills on suspicion that it might have been overcharged.

The government is conducting cost audits of contracts for services provided to the Canadian defense department, Palo Alto-based Hewlett-Packard said in a filing with the U.S. Securities and Exchange Commission. Canada has asked the company for documents to support its invoices.

The company said it was cooperating with the inquiry and was conducting one of its own.

Shares of HP fell 45 cents to $25.07 on the NYSE.