Teradata, the soon to be spun-off data warehousing software division of NCR, is being investigated by the US Justice Department over certain federal government contracts.
NCR disclosed the investigation proceedings into its business practices a recent quarterly SEC filing.
The 10-Q filing stated that an internal investigation by NCR had revealed questionable conduct. NCR said it has already shared its findings with the Justice Department.
The investigation is also related to civil litigation filed in a US district court filed under certain qui tam provisions of the False Claims Act that is being made against several technology companies, including NCR. Qui tam allows for a private individual, or whistleblower, with knowledge of past or present fraud committed against the US federal government to bring suit on its behalf.
The whistleblower in this case has not been named.
NCR officials, as expected, were keeping tight-lipped about the probe.
We do not comment beyond what is contained in our SEC disclosures, said Kelly Kramer, NCR’s media relations spokesman.
He also said the company had no comment on the litigation, which he said remains under seal.
Dayton, Ohio-based NCR, which makes cash registers and ATM machines, is preparing to split itself into two companies. It expects to spin off its Teradata division to shareholders at the end of the third quarter.
We do not expect any impact on the spin-off of Teradata, which is proceeding according to schedule, Kramer said.
The matter is not expected to have a material impact on the results of either NCR or Teradata, he added.