Canada Threatens to Sue Hewlett-Packard

Canada threatened to file a lawsuit against computer maker Hewlett-Packard Co. over a $119-million dispute involving defense contracts.

Saying there was no evidence HP did any work on the contracts in question, the government had sent the company a letter demanding repayment by March 22. Public Works Minister Stephen Owen said HP had replied and that it denied any responsibility for what had happened.

The demand for payment follows an internal audit and a police investigation into billing irregularities involving computer subcontractors of Canada’s defense agency.