IBM, Pricewaterhouse settle U.S. claims

IBM Corp. and PricewaterhouseCoopers have agreed to pay nearly $5.3 million combined to settle allegations that they made improper payments on government technology contracts, the Justice Department said Thursday.

IBM agreed to pay nearly $3 million, while accounting firm PricewaterhouseCoopers would pay $2.3 million.

Neither company admitted wrongdoing.

The agency said both companies solicited, paid money or provided other benefits to several companies, in violation of federal regulations.

“The payment of kickbacks or illegal inducements undermines the government procurement process,” said Peter D. Keisler, the agency’s assistant attorney general for the civil division.

The settlement is part of a larger, continuing federal investigation of three technology companies -- Hewlett-Packard Co., Sun Microsystems Inc. and Accenture Ltd. -- that also have been accused of providing kickbacks to federal consultants to get government tech contracts.

In those complaints filed in April, the government alleged the three companies formed alliances and paid kickbacks -- such as fees, commissions and discounted products and services -- to companies retained by the government to provide independent advice about appropriate hardware and software purchases.

The lawsuits were originally filed in a federal court in Little Rock, Ark., by Norman Rille and Neal Roberts under whistle-blower provisions of the False Claims Act.

Under that statute, a private party can file an action on behalf of the United States and receive a portion of recovered losses, the department said. The government can recover three times its losses plus civil penalties.