The Channel logo

News

By | John Oates 2nd September 2004 13:11

HP sues reseller for $8.6m

Wants its discounts back

HP is going to court in Tennessee to get back $8.6m in discounts given to a reseller. The filing alleges that Capital City Micro of Tennessee claimed it could sell HP and Compaq kit to P&E Distributing of Kentucky, but only if HP offered substantial discounts.

HP claims the kit was then sold on to other companies "to whom Capital City Micro had no authorization to sell". P&E Distributing, a drinks distributor, and its president David Welker are also named in the suit. HP wants damages for civil conspiracy, common-law fraud and breach of contract.

In 2001 HP discovered Capital City was abusing its discount scheme and ended its reseller agreement. Capital City then signed up as a Compaq reseller, again claiming P&E was its customer. Following the Compaq-HP merger HP again ended the reseller's agreement in May 2002.

Scott Anderson, acting general manager for solutions partner organization at HP, said: "HP is dedicated to monitoring, investigating and taking appropriate steps to prevent HP products entering the market through unauthorized channels." ®

Related stories

Hewlett-Packard: a wannabe Kodak?
Interex cowers behind HP omerta
HP's order system chaos to continue throughout August

alert Send corrections

Opinion

Trevor Pott

Why aren't you, personally, stopping the moronocalypse?
Star Trek Into Darkness

Chris Mellor

Federation fissiparousness to form co-ordinated divisions
iot_internet_of_things

Chris Mellor

EMC is ahead overall with HDS mounting an IoT catch-up

Features

Lego gandalf by https://www.flickr.com/photos/isherwoodchris/  CC 2.0 https://creativecommons.org/licenses/by-sa/2.0/ attribution sharealike
Why interconnectivity in the cloud is tougher than just stacking bricks
Handing over dollars picture via Shutterstock
Steve Ballmer. Pic:  Aanjhan Ranganathan
Nokia is the biggest write-off yet, but it wasn't the first
Confused computer keyboard
Last Christmas, I gave you my Cloud, the very next day you gave it away