VMware Allegedly Sold Software at Hyperinflated Prices to California

  • California AG Xavier Becerra reached a settlement with software company VMware to resolve allegations that it made false statements and overcharged state and local governments for information technology software in violation of California’s False Claims Act.
  • According to the settlement agreement, VMware allegedly submitted inaccurate and incomplete information to the federal government, which led the federal government to negotiate inflated prices for its software. Because California relies on the federal government’s pricing for its contracts, it was allegedly defrauded by VMware into paying inflated prices as well.
  • Under the terms of the settlement agreement, VMware will pay $4 million, of which over $2.95 million will be paid in restitution to the state and California colleges and universities.