FOR IMMEDIATE RELEASE CIV WEDNESDAY, AUGUST 3, 1994 (202) 514-2007 TDD (202) 514-1888 COMPUTER MAKER WILL PAY U.S. $1.7 MILLION IN SETTLING ALLEGATIONS IT FAILED TO INFORM GOVERNMENT ON CONTRACTS WASHINGTON, D.C. -- One of the country's largest manufacturers of software that unifies numerous office computers into one system will pay the government $1.725 million to settle allegations it overcharged the United States for computer equipment, the Department of Justice announced today. Assistant Attorney General Frank Hunger of the Civil Division said the settlement resolves charges brought against Novell Inc. of Provo, Utah, by a former employee, Mary Slutman, under the qui tam provisions of the False Claims Act in U.S. District Court in Alexandria, Virginia, in 1992. The complaint alleged that Novell failed to inform government negotiators fully about its pricing policies and to advise them that companies that sold Novell products to federal agencies under separate contracts received rebates. Novell was required by the contract solicitations and federal law to provide accurate information to the General Services Administration contract negotiators. Novell, one of the largest manufacturers of LANS (local area networks) in the country, won four one-year GSA contracts for automated data processing equipment and software between 1985 and 1989. The contracts set the prices, terms and conditions under which federal agencies could purchase products from Novell. Under the settlement, Slutman will receive $310,500 for bringing the matter to the attention of the government. Under the qui tam amendments of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and prosecutes it successfully. The case was audited and investigated by the Office of Inspector General of the GSA and the Civil Division. The Civil Division negotiated the settlement. ##### 94-435