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Samsung to pay $2.3m to end investigation into lies and supplies

Department of Justice lays down a legal smackdown
Wed Aug 20 2014, 14:22
Samsung must pay $2.3m to the US department of justice

SAMSUNG WILL PAY $2.3m to the US Department of Justice (DoJ) to end an investigation of claims that it made misleading statements about its business.

The firm was accused of making misleading statements about the sources of some of its equipment in order to stay within the confines of the Trade Agreements Act of 1979 (TAA), which binds companies to terms when dealing with federal buyers. This happens under the gaze of the US General Services Administration (GSA).

Samsung was accused of saying that kit was from one place when it fact it came from another. We have asked for it to comment on the Department of Justice announcement. So far it has not responded.

The DoJ is clear on what happened, and said that it will always protect public purchases. "The Department of Justice is committed to protecting public funds and guarding against abuse of federal procurement programs," said assistant attorney general Stuart Delery of the DoJ Civil Division.

"This settlement upholds important trade priorities by ensuring that the United States only uses its buying power to purchase from countries that trade fairly with us."

The allegations came about from a civil lawsuit filed against Samsung by a former employee, according to the DoJ. Under US law plaintiff Robert Simmons will get a chunk of Samsung's $2.3m settlement. The amount of his reward is not yet decided.

"It is unacceptable to sell unauthorised foreign electronics to the United States," said GSA acting inspector general Robert Erickson.

"We expect all companies doing business with the federal government to comply with contracting laws." µ


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