Storage Soup

Apr 14 2009   2:13PM GMT

NetApp to pay $128 million to settle GSA probe

Beth Pariseau Beth Pariseau Profile: Beth Pariseau

In an SEC filing Monday, NetApp disclosed it has paid $128 million to the federal government to settle a Department of Justice probe into its contracting activity with the General Services Administration (GSA).

EMC has also disclosed it’s the target of a similar probe, and late last fall it was also reported that several other IT vendors have been targeted by the DOJ over pricing, including Sun Microsystems, Canon and Cisco.

In exchange for the settlement, according to the filing, “the parties to the Agreement have agreed to release NetApp with respect to the claims alleged in the investigation as set forth in the Agreement. The Agreement reflects neither an admission nor denial by NetApp of any of the claims alleged by the DOJ, and represents a compromise to avoid continued litigation and associated risks.” NetApp “recorded a $128.0 million accrual for this contingency in the third quarter of fiscal 2009.”

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