Facts

The State of California and qui tam plaintiff David Sherwin brought an action against Office Depot Inc. for money damages and penalties under the California False Claims Act.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that State of California governmental agencies and instrumentalities purchased an assortment of office products pursuant to the United States Communities/Los Angeles County contract with Office Depot. Plaintiff further alleged Office Depot submitted a number of requests for payments under this contract that were based on false and fraudulent claims. Plaintiff contended that Office Depot's false claims included, in part, increasing prices without notice as required by the contract and failing to provide California government agencies the best price given to Office Depot's best customers as required by the contract.

DEFENDANT'S CONTENTIONS:
Office Depot denied the allegations of the complaint and alleged various affirmative defenses.

Result

The parties settled the lawsuit and Office Depot agreed to pay a total of $68,500,000 to be allocated among 19 intervenors and 1,276 real parties in interest. Among the parties, the City of Los Angeles agreed to accept $8,692,308 in settlement of its claims.