HERE WE GO AGAIN…MISSOURI A.G. INVESTIGATING OFFICE DEPOT

[Anonymous]

http://www.bizjournals.com/southflorida/stories/2009/02/02/daily44.html
Missouri AG investigating Office Depot
Missouri
Attorney General Chris Koster has launched a statewide probe into Boca
Raton-based Office Depot over allegations of fraudulent pricing and
overcharging on government contracts.After learning from other states
and their attorneys general about Office Depot’s alleged
bait-and-switch pricing and overcharging, Koster launched his own
investigation shortly after he took office last month.

His office has sent a request for documents to the office supply company.
“The
state of Missouri will not tolerate fraud or the taking advantage of
unsuspecting government agencies and nonprofits in our state,” Koster
said. “We’re going to look aggressively at Office Depot’s records and,
if necessary, get restitution on behalf of the people of Missouri.”

The
investigation follows others in Florida and North Carolina, the
National Office Products Alliance said on Tuesday. All three
investigations are based on the testimony of David Sherwin, a
whistle-blower and former Office Depot manager in Florida.The
investigations concern allegations associated with Office Depot’s
participation as the sole vendor on a nationwide federal contract for
office and classroom supplies worth $700 million a year.

State,
county and municipal government agencies and school districts in all 50
U.S. states participate in that contract, the association said.Several
state governments also use the contract as a new purchasing option for
state agency employees.“In some cases, this step has been taken as an
alternative to rebidding state office supplies contracts, a decision
that has prevented independent dealers from fairly competing for
government business, while denying government agencies and taxpayers
the benefits of ongoing competition,” the association said in a
statement.

Office Depot said in a prepared statement that it
will vigorously defend any allegations of wrongdoing lodged against the
company and “will fully cooperate with the Missouri attorney general’s
office, as we do in all government and regulatory inquiries.”Office
Depot shares closed Tuesday at $1.92. The 52-week high was $14.95 on
Feb. 12. The 52-week low was $1.45 on Nov. 21.

[Author]

February 10, 2009 at 2:56 PM