The Hewlett-Packard Company has agreed to co –operate with a Justice Department Investigation. The investigation is with reference to a government sponsored technology contracts. Submitting to the investigations would mean that the company will suffer the a loss of two cents per share and will directly affect the Company’s earnings in the third Quarter this fiscal year.

This investigation has been triggered by a complaint registered by the Justice Department in 2007. The Complaint claimed that the Company was using Millions of Dollars in kick back schemes and rebates that the company could not justify on paper. The complaint actually surfaced in 2004 under the false claims act. This complaint was later attached to the 2007 complaint registered by the Justice Department. The Complaint was registered against the Microsystems and Accenture in addition To H.P. The complaints also claimed that these illegal rebates were worked into the system from as early as the early 1990s.

The I.B.M Companies and PricewaterhouseCoopers Company paid a sum of $ 5.2 million to extricate themselves from the case of illegal rebates. H.P is yet to furnish complete details about the settlement it has attempted to reach in relation to this year. The Company’s Spokesperson said that the Company was not involved in any illegal activity as the department of Justice Claims the Company is. However, the Company has decided to submit to the investigations in an attempt to clear its name from the allegations.

The Complaints claim that the Company was using this money to pay its partners and provide rebates that were not recorded on its balance sheets. It also seems to have given its alliance partners kickbacks. The department of Justice has decided to crack down on the illegal activities seen in corporate companies recently. The move will attempt to clean the corporate world of financial corruption.