Canadian Manufacturing

VMware and Carahsoft pay US$75M to settle federal overcharging suit

The settlement resolves allegations that VMware and Carahsoft made false statements



ALEXANDRIA, Va.—VMware Inc. and Carahsoft Technology Corp. have agreed to pay $75.5 million to settle claims they overcharged the government.

The settlement announced Tuesday by U.S. Attorney Dana Boente of the Eastern District of Virginia resolves allegations that the companies violated the False Claims Act.

VMware, a Delaware corporation headquartered in Palo Alto, California, specializes in computer virtualization software. Carahsoft, a Maryland corporation headquartered in Reston, Virginia, distributes information technology products to governments.

The settlement resolves allegations that VMware and Carahsoft made false statements allowing them to overcharge for VMware products and services under a Carahsoft contract from 2007 through 2013. Dane Smith, a former vice-president of the Americas at VMware, filed the civil lawsuit. His share of the recovery hasn’t been determined.

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