United States Ex Rel. Rille v. Hewlett-Packard Co.
784 F. Supp. 2d 1097
E.D. Ark.2011Background
- Relators filed a qui tam action under FCA; Government intervened later and settled with HP on kickback and defective pricing claims.
- Settlement divided into two components: $9 million for kickbacks and $46 million for defective pricing under GSA contract GS-35F-0066N.
- Relators sought a share of the settlements; Government sought modest or no more than minimum shares for certain components.
- Court previously denied Relators’ motion as to the defective pricing portion to receive a relators’ share.
- Relators’ contributions included large document production and aiding investigation; defense and Government acknowledged extensive but not exclusive reliance on Relators’ information.
- Court applies FCA 15–25% framework with DOJ guidance to determine relator share, focusing on contribution and information significance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What is Relators’ share of the kickback settlement? | Rille/Roberts contributed substantially; documents and support justify >15% | Contributions limited to HP-Accenture relationship; information not uniquely theirs | Relators receive 21% of kickback settlement ($9M) |
| What is Relators’ share of the defective pricing settlement? | Relators’ early discovery and Government intervention support a 15% share | Settlement largely driven by post-intervention investigation; Relators’ role limited | Relators receive 15% of defective pricing settlement ($6.9M) |
Key Cases Cited
- U.S. ex rel. Alderson v. Quorum Health Group, Inc., 171 F. Supp. 2d 1323 (M.D. Fla. 2001) (Senate Report factors and minimum/maximum ranges for relator shares)
- U.S. ex rel. Burr v. Blue Cross & Blue Shield of Florida, Inc., 882 F. Supp. 166 (M.D. Fla. 1995) (min share in certain circumstances and evaluation criteria)
- U.S. ex rel. Johnson-Pochardt v. Rapid City Regional Hosp., 252 F. Supp. 2d 892 (D.S.D. 2003) (DOJ factors for evaluating relator contributions)
- U.S. v. Coughlin, et al. v. IBM Corp., 992 F. Supp. 137 (N.D.N.Y. 1998) (considerations for assessing relator impact on government case)