PricewaterhouseCoopers and IBM have settled allegations that the companies were involved in graft over government contracts.
According to the Department of Justice press release, the firms had agreed to pay $5.2 million to settle the allegations. IBM has agreed to pay close to $3 million and PricewaterhouseCoopers just over $2.3 million. Not good news for Accenture, Hewlett-Packard, and Sun Microsystems because allegations have been made against those companies, according to the release.
Not surprisingly, the firms have admitted nothing.
"IBM did not engage in any kickbacks, false claims, or any other illegal conduct in any of the claims that have been filed in this matter. We're not going to discuss the reasons for the settlement," IBM spokesman Fred mcneese told reporters.
"PWC believes that the allegations of the complaint characterizing conduct as 'kickbacks' are completely without merit as to the firm, but chose to settle the case, without any admission of wrongdoing, in order to avoid the expense, distraction and uncertainty of litigation," said PricewaterhouseCoopers.
So if the payments weren't kickbacks, what exactly were they? The companies offered no explanation. Which makes it a pretty expensive exercise for not doing anything wrong.
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