EMC pays out millions to wind up US pricing probe

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EMC pays out millions to wind up US pricing probe

Simon Quicke

EMC is restating its fourth quarter results after paying out $87.5m to end a probe into its pricing by the Department of Justice.

The storage giant has announced that it has offered to make the payment but denies any wrong doing but has now restated results for the three months ended 31 December taking 1% off the profit share.

The investigation by the US Department of Justice has been running for a year after it emerged there were concerns that the vendor had been setting prices with integrators that broke terms and conditions of contracts already made with the government.

In a filing to the Security and Exchange Commission the vendor revealed the settlement and the restatement of results.

"EMC has adjusted its fourth quarter and full year 2009 financial statements by reorganising a pre-tax charge of $57.5m for a provision of litigation," the vendor stated.

it also used the filing to reveal it had set aside some money to cover the cost of reorganising its "international operations" into a single holding company.

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