Dell, Iron Bow Settle False Claims Act Case, DOJ Investigation Ongoing - CRN
‘This settlement demonstrates the department’s commitment to hold accountable those who overcharge the government through collusion or other unlawful conduct,’ said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, in a statement.
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Over a period of four years Dell Technologies knowingly submitted high bids on US Army hardware contracts to ensure that its reseller Iron Bow Technologies would win the deal with a lower bid, conduct that violated the False Claims Act and remains under investigation by the Department of Justice, according to court filings.
“Dell submitted bids to the Army that Dell and Iron Bow knew would be higher than the Iron Bow's bid, thereby creating the false appearance of competition,” the civil settlement with the US. Department Of Justice states. “The United States contends that this influenced the Army's source selection process and caused Iron Bow to overcharge the Army.”
Dell Technologies and Iron Bow, No. 41 on the 2024 CRN Solution Provider 500, agreed to settle civil claims that it violated the False Claims Act for $4.3 million, without admitting to wrongdoing. Dell told CRN Wednesday morning the settlement is “not an admission of guilt.”
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Iron Bow, which is majority-owned by private equity investment firm H.I.G. Capital, did not immediately respond to a request for comment. The...
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