Office Depot Agrees to Pay $43 Million to Resolve Allegations Under the California False Claims Act

Office Depot will reportedly pay $43 million to resolve allegations that the company violated the California False Claims Act by “systematically” violating the terms of its contracts with various California governmental agencies.  The whisteblower, a former Office Depot salesman, alleged that Office Depot fraudulently over billed California governmental entities by violating “most favored public entity” provisions in the contracts.  Under the settlement, over $11 million of the $43 million will go to the City of Los Angeles.  Office Depot is currently under investigation for similar conduct in other jurisdictions.

 

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