Hewlett-Packard Co. (HP, Houston, TX) announced that it has resolved a dispute with the Government of Canada, stemming from a complex scheme designed to exploit both parties through contracts inherited through HP's merger with Compaq Computer Corp. HP Canada has agreed to reimburse the Government of Canada the sum of CDN$146 million (approximately US$105 million) -- an amount determined by both parties to be appropriate upon investigation.
HP determined that it was important for the company to honor its contractual obligations, rather than engage in protracted litigation with the Government of Canada, despite the lack of evidence that HP employees derived any improper benefit from the scheme. HP now intends to take appropriate steps, including legal action, to recover these funds from the individuals and companies responsible.
