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Staples settles False Claims Act suit for $7.4 million

Staples Contract and Commercial has paid the federal government $7.4 million to settle allegations that it sold office supply products manufactured in countries not permitted by the Trade Agreements Act to United States government agencies.

The suit, filed under the whistleblower provisions of the False Claims Act, claimed that the office products company sold items from countries that do not have reciprocal trade agreements with the U.S., in violation of its contract with the United States General Services Administration.

Earlier this year, the Justice Department reached a $9.8 million settlement with Office Max, Inc. and a $4.75 million settlement with Office Depot, Inc. based on the same allegations.

The Dept. of Justice’s October 18, 2005 press release can be found on their website.

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