Storage Soup

Mar 2 2009   9:37PM GMT

EMC vows to fight DOJ investigation

Beth Pariseau Beth Pariseau Profile: Beth Pariseau

Not a month after an Israeli news source reported that EMC Corp. had been under investigation concerning government contracts in Israel, EMC revealed in its annual report filed with the SEC that it’s under investigation by the Civil Division of Department of Justice (DOJ). The DOJ investigation involvesĀ “allegations concerning (i) EMC’s fee arrangements with systems integrators and other partners in federal government transactions, and (ii) EMC’s compliance with the terms and conditions of certain agreements pursuant to which we sold products and services to the federal government, including potential violations of the False Claims Act.”

There’s no relation to the Israeli investigation, according to an EMC spokesperson. In another contrast with that case, in which EMC flatly denied comment, this time the company is flatly denying any wrongdoing will be found by the DOJ. “EMC did not make improper payments to business partners and did not violate the False Claims Act,” wrote the spokesperson in an email to SearchStorage.com. “The matters at issue in this case are historical in nature; some of the allegations relate to events nearly ten years old. We will vigorously defend this case and the many years EMC has spent serving the U.S. Government…”

The SEC filing reads,

The subject matter of this investigation also overlaps with that of a previous audit by the U.S. General Services Administration (“GSA”) concerning our recordkeeping and pricing practices under a schedule agreement we entered into with GSA in November 1999 which, following several extensions, expired in June 2007. We have cooperated with both the audit and the DoJ investigation, voluntarily providing documents and information, and have engaged in discussions aimed at resolving this matter without any admission or finding of liability on the part of EMC.

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