Office Depot Settles False Claims for $68.5M; Whistleblower Award TBD

Office Depot has agreed to pay $68.5 million to resolve allegations that the company knowingly submitted or caused the submission of false claims to California government entities for office supplies, Corporate Crime Reporter reported last week.

The California entities were participants in the U.S. Communities purchasing program and thus guaranteed to receive Office Depot’s best available prices for government purchasers.  However, Office Depot allegedly gave Los Angeles, Santa Clara, and other California cities, counties, and school districts a lower discount rate than other government entities, resulting in overcharges.

The lawsuit was originally filed by former Office Depot employee David Sherwin under the whistleblower provisions of the False Claims Act, which allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Sherwin’s portion of the settlement has yet to be determined.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.