Financial calculations have shown that the settlement between Hewlett-Packard Co. and the US government is going to cost the IT Company dearly.

The fall is going to be in the range of 2 cents per share of the company during the third quarter of this year.

The settlement was done so as to resolve allegations that HP had followed illegal methods for gaining contracts. These were all related to government dealings and were filed by Norman Rille.

Back in 2007, the Justice Department had joined lawsuits against HP along with Accenture, Sun Microsystems. These said that the companies were using improper payment methods to be able to form partnerships in government contracts.

The suits, which were originally filed in U. S. District Court in Little Rock had alleged that the three companies were also giving false information to be able to win the contracts.

Rille turned out to be a whistle-blower.

Now, the settlement is lying with the Justice Department and is waiting for the approval along with other agencies and the courts.

That is the reason, said HP that it has not made any forecasts for the coming quarter.