The Office of New York Attorney General Eric T. Schneiderman recently announced a $475,000 settlement with Office Depot to resolve allegations that Office Depot overcharged New York state agencies for office supplies. Office Depot contracted with the New York State Office of General Services (“OGS”) to sell office supplies to OGS at prices equal to or lower than those offered to the United States General Services Administration. However, according to the New York Attorney General, Office Depot overcharged OGS by hundreds of thousands of dollars. Affected agency purchasers served by OGS included police, fire departments, prisons, and schools throughout the state. Office Depot’s contract with OGS has not been renewed. The NY AG’s press release discussing the settlement is available here.
Office Depot has denied any overcharging, stating that the settlement avoided the burden and expense of litigation and further business disruption. Office Depot’s decision to settle may have been influenced by the ongoing litigation it faces in California alleging that it violated the California False Claims Act by overcharging for supplies. For more information, see previous blog posts here and here.