VMware Settles With The Government In Alleged Fraud Case

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Posted 2 years ago


VMware To Acquire AirWatchSoftware company VMware has agreed to a settlement to pay a federal government agency to bring closure to a lawsuit where it was accused of fraud.

The lawsuit was brought against VMware and a government approved reseller partner, Carahsoft, back in 2010.

In the lawsuit, the General Services Administration claimed that VMware and the reseller practiced “inaccurate pricing, inaccurate disclosures, and incomplete information about sales of VMware products to non-governmental customers” to them, leading them to pay more than private companies.

The specific bone of contention lay in a discount offering that was made by VMware which was said to be lower than ones made to foreign governments.

The total amount of the settlement? $75.5 million, which the law firm prosecuting the case states as “one of the five largest recoveries against a technology company in the history of the False Claims Act.”

VMware issued a statement that denied any fraud and misbehavior on their part, but claimed that they settled to avoid more drawn-out litigation.

Christopher A. Smith


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