Symantec Corporation (SYMC) may see damages of around $145 million from U.S. probe

Posted Feb 4, 2014

Symantec Corporation (NASDAQ:SYMC) has reported that they may see damages of around $145 million as part of compliance with government contracting rules surrounding a U.S. probe. U.S. officials indicated the estimate of the damages in January to Symantec. Symantec pointed out the damages in a filing with the U.S. Securities and Exchange Commission.

?We are fully cooperating with the investigation and in January 2014 met with representatives of the government who presented us with an initial analysis of our actual damages exposure in the amount of approximately $145 million,? stated Symantec in a filing. Symantec said that they are in the process of evaluating the government’s analysis and said that it may be possible for the investigation could lead to claims or findings of violations of the False Claims Act. Symantec said that their total sales under the General Services Administration Schedule contract was around $210 million from January 2007 to December 2011. The GSA Schedule contracts are long-term and have indefinite delivery and quantity contracts under the Multiple Award Schedule Program.

Symantec was advised by the U.S. Department of Justice and the U.S. Attorney?s Office for the District of Columbia that they would be investigated during Q1 2013 regarding compliance of the GSA contract. This includes provisions related to pricing, origin country, accessibility, and commercial sales practice disclosures.

[Source: PCWorld]