HP is suing former US reseller Intelligent Decisions for $8 million over alleged grey-market sales.
Intelligent Decisions is alleged to have misrepresented itself in order to win discounts on HP products that it later resold on the grey market. HP claims that, of $22 million in HP products purchased by the reseller, just $2.1 million were resold to the major government clients HP thought it was supporting.
HP alleges that the surplus products were resold to brokers and resellers in violation of its reseller agreements.
Recent estimates indicate that the IT industry is losing an estimated $5 billion each year as a result of grey-market sales.