Tuesday, October 18, 2005
Staples Pays U.S. $7.4 Million to Settle False Claims Allegation
Staples Contract and Commercial, a division of office products giant Staples, Inc., has paid the United States $7.4 million to settle allegations that it submitted false claims when it sold office supply products manufactured in countries not permitted by the Trade Agreements Act to United States government agencies, the Justice Department announced in a press release today.
The settlement resolves allegations that the Framingham, MA-based company sold products from countries that do not have reciprocal trade agreements with the U.S., such as China and Taiwan. Staples was required by its contract with the General Services Administration (GSA) to prevent such items from being offered for sale to U.S. government agencies.
This case was filed under the qui tam provisions of the False Claims Act by Safina Office Products and two of its executives, Edward Wilder and Robert Hsi Chou Lee, in the U.S. District Court for the District of Columbia in January 2003. Safina, Wilder and Lee will collectively receive $1.11 million of the total recovery as their statutory award. Under the whistleblower provisions of the False Claims Act, private parties can file an action on behalf of the U.S. and receive a portion of the proceeds of a settlement or judgment awarded against a defendant.
The full press release of this qui tam story is available via usnewswire.com.
Posted by Quitam Help Admin on 10/18 at 09:40 AM
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