U.S. JUSTICE DEPARTMENT INVESTIGATES OFFICE DEPOT

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U.S. JUSTICE DEPARTMENT INVESTIGATES OFFICE DEPOT

NEW YORK — The Justice Department is investigating Office Depot Inc. for prices it charged state, local and nonprofit agencies for office supplies.The investigation is related to an expired agreement in place between Jan. 2, 2006, and Jan. 1, 2011, according to an Office Depot filing with the Securities and Exchange Commission on Tuesday.The investigation mirrors a 2009 probe into Office Depot, based in Boca Raton, Fla., conducted by the U.S. Department of Defense, the Department of Education and the General Services Administration, led by the Department of Justice, into prices the office supply retailer charged federal agencies.

At the time there were several state investigations into similar complaints in Florida, Missouri, Ohio and others."The Department of Justice appears to be examining the same issues investigated previously by the Florida Attorney General," Office Depot said in a statement. "Office Depot reached an amicable resolution with the Florida Attorney General with no admission of wrong-doing."Separately, last year the company agreed to pay $1 million to settle federal charges that it overstated earnings and shared information with a select group that it failed to include in public filings. Office Depot neither admitted nor denied the allegations.The company was accused of overstating earnings in mid-2006 through mid-2007. It was also accused of letting a select group of investors and analysts know that it wouldn’t meet earnings estimates for the second quarter of 2007.On Tuesday Office Depot said its fourth-quarter loss narrowed as it cut costs to offset a revenue decline.Shares fell 3 percent to $5.46 during midday trading.

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March 2, 2011 at 7:29 AM