EDS faces lawsuits related to allegations of fraud

Two lawsuits related to an allegedly fraudulent purchasing scheme have been filed by bidding vendors against Electronic Data Systems (EDS), which acted as the coordinator for the bids, the company announced on Wednesday.

The lawsuits filed against EDS concern what were purported to be purchases for a sensitive North Atlantic Treaty Organisation (NATO) project under an allegedly fraudulent scheme which EDS first discovered in late 1999, the IT services company said in a statement.

During the course of an internal investigation, EDS officials became suspicious of the procurement scheme and the company reported its findings to the other vendors involved as well as the Federal Bureau of Investigation and other US as well as international authorities, EDS said.

In its statement, EDS said that although the company believes it has good and meritorious defenses to the claims in the lawsuits, it is unable to comment further at this time because of the governmental investigations and the pending litigation.

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