Software company Adobe (NASDAQ:ADBE) has agreed to pay $3 million to settle allegations of paying kickbacks in return for “influence over the sale of Adobe software to the federal government.”
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The settlement, announced by the U.S. Department of Justice, resolves allegations that Adobe made improper payments between January 2011 and December 2020, under its Solution Partner program to companies that had a contractual or other relationship with the government. Such arrangements allowed these companies to influence federal purchases of Adobe software.
The DOJ contended that these payments, which were a percentage of the software’s purchase price, “constituted prohibited kickbacks that resulted in Adobe causing false claims for payment to be submitted to federal agencies.”
The settlement includes resolution of claims brought by three former Adobe managers under the whistleblower provisions. These three managers will receive $555,000 as part of the deal.
“We’ve cooperated with the government since it began its investigation in 2018. We value our relationships with the U.S. government and U.S. government customers and are pleased to have this matter behind us,” said Adobe in a statement.
Is Adobe a Good Stock to Buy?
Wall Street’s Moderate Buy consensus rating for Adobe is based on 11 Buys and 13 Holds. The average ADBE stock price target of $397.16 implies nearly 5% upside potential. Shares have risen nearly 13% year-to-date.
