October 03, 2024 09:21 GMT
TECHNOLOGY: DoJ Expands SAP/Carahsoft Investigation; Not A Spread Mover
TECHNOLOGY
A1/A+ EUR Spreads Muted
Not likely to be a driver of spreads (largely unchanged through the initial reports last week) but likely to be the source of continued headlines as the investigation progresses. Q3 results will likely shed additional light on the claims.
- DOJ expanded its probe into SAP and Carahsoft, now covering 94 civilian government agencies regarding potential price-fixing on SAP services.
- Investigation focused on overcharging the US government on over EUR 2bn of SAP technology since 2014.
- Carahsoft contests the probe’s scope and has resisted document demands.
- The investigation involves the False Claims Act, allowing the government to seek up to three times the damages; however, settlements are typically much lower.
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