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Qualcomm (QCOM) - Get Free Report agreed to pay $1.8 million to settle Justice Department charges that it illegally took control of its Flarion unit before the government signed off on the acquisition.

San Diego-based Qualcomm, developer of the code division multiple access wireless communications standard, said it was accused of so-called gun-jumping in handling certain Flarion intellectual property ahead of the feds' mid-January go-ahead. Qualcomm said it didn't admit to any wrongdoing in the settlement and continues to disagree with Justice's position.

"With the successful integration of Flarion well under way, we decided to put this matter behind us to avoid diverting or distracting the Qualcomm-Flarion team from the important tasks of integrating the best of both companies' technologies and refining our joint roadmap," said Louis Lupin, senior vice president and general counsel for Qualcomm.

Qualcomm says the acquisition was cleared by Justice's Antitrust Division and closed in mid-January. "During the Hart-Scott-Rodino review of the transaction, Qualcomm and Flarion called the DOJ's attention to provisions of the acquisition agreement that required Flarion, in the period before the closing, to obtain Qualcomm's consent to enter into certain types of intellectual property licenses and other agreements, and to make certain types of customer proposals," Qualcomm says. "Qualcomm and Flarion voluntarily modified some of the provisions to eliminate or reduce the consent requirement," but Justice says the provisions effectively gave Qualcomm "an inappropriate level of control," the company says.

On Thursday, Qualcomm rose 65 cents to $51.62.