US says Photoshop maker Adobe to pay $3 million to settle kickback allegations

By Kanishka Singh

WASHINGTON (Reuters) -Photoshop maker Adobe Inc has agreed to pay $3 million to settle U.S. kickback allegations involving federal software sales, the U.S. Justice Department said in a statement on Thursday.

The settlement resolves allegations that Adobe made improper payments under its Solution Partner program to companies that had a contractual or other relationship with the government that allowed them to influence federal purchases of Adobe software, the Justice Department said.

Between January 2011 and December 2020, Adobe allegedly paid the companies a percentage of the purchase price of the software, according to the Justice Department.

The United States contends that these payments constituted prohibited kickbacks that resulted in Adobe causing false claims for payment to be submitted to federal agencies.

The company said on Thursday that it had cooperated with the government since it began its probe in 2018 and was pleased “to have this matter behind us.”

“Those who do business with the government are prohibited from paying kickbacks, which can result in unnecessary purchases and increase costs to taxpayers,” said Brian Boynton, head of the Justice Department’s civil division.

“We will continue to use all appropriate tools to safeguard the integrity of the federal procurement process,” Boynton said.

(Reporting by Kanishka Singh in Washington; Editing by Jonathan Oatis and Daniel Wallis)