On Monday the U.S. Justice Department said that to reconcile kickback allegations associated to federal government deals, Hewlett Packard Co has decided to pay $ 55 million.

One of the world’s biggest personal computer manufacturer, the company is in a bidding war for data Storage Company 3PAR Inc with Dell Inc, earlier the company said that it would clear up the deal and the contract would decrease income for its financial third quarter by two cents per share.
The HP Company charged of paying sweeteners to other corporations that suggested federal agencies to buy its products and allegations were earliest conveyed to light by whistle-blowers in a 2004 lawsuit.

Assistant Attorney General for the Justice Department’s civil division, Tony West, said that, “Contractors must deal fairly with the government when doing business with federal agencies.”

With a 2002 HP agreement with the General Services Administration, the company which handles a large amount of the federal government’s procurement, the agreement will provide resolutions for another cases involving pricing issues.

The justice department said that the HP realized in 2007 that it might have unsuccessful to make available entire pricing information throughout the indenture negotiations. The company agreed to settle to get past the issue but refused any illegal conduct.

The company said in a statement that “HP denies engaging in any illegal conduct in connection with these matters. We believe it is in the best interest of our stakeholders to resolve the matter and move beyond this issue.”