Article: HP Continues to Combat the Gray Market, Files Suit for Fraud, Breach of Contract and Conspiracy.

PALO ALTO, Calif. -- HP (NYSE:HPQ)(Nasdaq:HPQ)today announced it has filed suit in a Tennessee federal court to recover more than $8.6 million in pricing discounts for computer equipment that defendants falsely claimed were purchased by Capital City Micro, Inc. of Tennessee for resale to P & E Distributing of Kentucky. HP's complaint sets forth claims for damages that include civil conspiracy, common-law fraud and breach of contract.

HP's complaint alleges that defendants Capital City Micro and its president, Martin Meeks, told HP that Capital City Micro had opportunities to sell HP and Compaq products to beverage wholesaler P & E Distributing that required ...

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