Two companies have reached an agreement to pay the United States government $2 million each as part of a settlement regarding a lawsuit that accused them of unlawfully inflating the prices of computers and hardware supplied to the U.S. Army, the Department of Justice announced on Tuesday.

The lawsuit detailed that both Iron Bow, a reseller of technology products, and Dell competed for contracts to supply essential hardware to the Army between the years 2020 to 2024. Iron Bow was also responsible for distributing Dell products during this period. Allegations within the lawsuit indicate that Dell provided Iron Bow with discounts on Dell merchandise, which were then sold to the Army at a higher price than what was offered to Iron Bow. This scheme purportedly inflated the costs of equipment supplied to the military while creating a false perception of competition among vendors.

“This settlement underscores the department’s dedication to ensuring accountability for anyone who charges the government excessively through collusion or other illegal activities,” remarked Brian M. Boynton, who leads the Civil Division of the Justice Department.

Under the settlement terms, Dell has agreed to pay $2.3 million to the government, while Iron Bow will pay slightly over $2 million. Notably, in the settlement documents, Dell refuted the claims stated in the lawsuit, whereas Iron Bow indicated that the settlement was made to avoid the prolonged litigation process, as well as the associated uncertainties and costs. Neither company admitted to liability as part of these agreements.

Requests for further comments were reportedly submitted on Tuesday to the media representatives of both companies.

In a related development, Brent Lillard, an executive from another technology firm, initiated a lawsuit in the Northern Alabama District Court in 2020 against both Dell and Iron Bow. His complaint was filed under a whistleblower provision in the False Claims Act, which permits private individuals to pursue legal action on behalf of the government if they suspect fraudulent claims regarding government funds have been made. As part of this law, Lillard is entitled to receive $345,000 from the total amount of $2.3 million owed by Dell.