Symantec says damages from US probe may be $145 million

The U.S. is investigating the company's compliance with government contracting rules

Symantec said that the damages from a U.S. investigation into its compliance with government contracting rules may be about US$145 million.

U.S. officials are said to have conveyed in January to the company an estimate of the damages, the security software company said in a filing Monday to the U.S. Securities and Exchange Commission.

"We are fully cooperating with the investigation and in January 2014 met with representatives of the government who presented us with an initial analysis of our actual damages exposure in the amount of approximately $145 million," Symantec said in the filing.

The company said it is in the process of evaluating the government's initial analysis, and it was possible that the investigation could lead to claims or findings of violations of the False Claims Act, which "could be material to our results of operations and cash flows for any period."

The False Claims Act is a U.S federal law setting criminal and civil penalties for false or fraudulent claims for payment or approval to the government, misrepresenting the amount of a delivered product, or under-stating an obligation to the government.

Symantec said its total sales under the General Services Administration Schedule contract were about $210 million from January 2007 to December 2011. GSA Schedule contracts, also known as Federal Supply Schedules, are long-term, indefinite delivery and quantity contracts under the GSA's Multiple Award Schedule Program, according to the GSA website.

During the first quarter of fiscal 2013, Symantec was advised by the U.S. Department of Justice and the U.S. Attorney's Office for the District of Columbia that the government was investigating its compliance with the GSA contract, including with provisions relating to pricing, country of origin, accessibility and the disclosure of commercial sales practices.

Resolutions of investigations under the False Claims Act could result in the imposition of damages, including up to treble damages, plus civil penalties in some cases, Symantec said.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags U.S. Department of Justicesymantecregulationsecuritylegalgovernment

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?