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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: PCSS who wrote (83782)	7/26/2000 1:28:50 PM
From: Lynn	Read Replies (1) \| Respond to of 97611

Thread: One legal case against CPQ has now been settled: Wednesday July 26, 1:21 pm Eastern Time Compaq settles claims it overcharged U.S. WASHINGTON, July 26 (Reuters) - Compaq Computer Corp. (NYSE:CPQ - news), the world's No. 1 personal computer maker, agreed on Wednesday to pay $4.5 million to settle charges that a company it acquired in 1998 overcharged the U.S. Defence Department to install computer network equipment. The company that was bought, Digital Equipment Corp., submitted a report to the government in 1995 admitting it had inflated labour charges on work done in Orlando, Fla., as well as Frankfurt, Germany, the U.S. Justice Department said. ``Cases like this demonstrate the Justice Department's continuing commitment to ensuring that the government contractors do not overcharge the United States on goods or services,'' David Ogden, acting assistant attorney general for the agency's civil division, said in a statement. The contract, signed in 1991 and ended in 1996, provided hardware, software and services for the installation and maintenance of personal computer-local area networks and was valued at $235 million. The government said a further federal probe found the inflated charges for the contract involving a personal computer-local area network extended beyond Digital's admission, a charge Compaq disputed. The government said it found that Digital had converted the costs of some parts plus shipping and warehousing into labour hours, as well as improperly billed travel time as a direct cost and charged a higher rate for certain labour than the contract allowed. ``Compaq believes all the charges investigated and reasonably alleged by the government were identified in Digital's 1995 voluntary disclosure,'' the Houston-based firm said in a statement. Compaq shares were up 1-3/7 to 28-13/16 in midday trading on the New York Stock Exchange. biz.yahoo.com Now how many remain? Any of those irate shareholder suits get dropped? I lost track a while back. Lynn