April 15, 2009 — NetApp Inc.

NetApp Inc. and NetApp U.S. have agreed to pay $128,000,000 (plus interest) to settle qui tam actions filed against the companies by one of its former employees, Igor Kapuscinski.

The allegations of the case were that when the companies negotiated contracts to provide the government with computer hardware, software and data storage services, the companies failed to disclose required pricing information, such as the fact that the company had offered discounts to its commercial customers, without having offered the same discounts to the government.

Under government contracts, sellers are required to disclose accurate pricing information, such as any discounts which the company offers, or has offered, to anyone else, so that the government doesn’t pay more for goods or services than what the company is charging others for the same goods or services.

As a reward for having filed his qui tam claim, Mr. Kapuscinski will receive $19,200,000.00.

See U.S. Dept of Justice Press Release 4/15/09

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