Archive for June, 2013

Calif. Judge Denies Motions to Dismiss Office Depot Lawsuits

Tuesday, June 11th, 2013

A California judge has denied motions by Office Depot to dismiss
a lawsuit filed by whistleblower and former Depot employee David
Sherwin and the state of California related to allegations that
the Florida big box used two pricing plans on a U.S. Communities
contract with local government agencies and that the company
did not give the agencies the lowest price point for office products.
The South Florida Business Journal reported last month that Office
Depot had indicated in its first quarter 10-Q filing with the
Securities and Exchange Commission that it had filed motions
to dismiss the lawsuits, but court documents filed on April 9 said
that the motions were denied without prejudice.
According to the court documents, a scheduling conference and
hearing on Office Depot’s motion to dismiss Sherwin’s lawsuit will
remain on the calendar.
In the 10-Q filing, Office Depot said it intends to “vigorously” defend
itself in the lawsuits, and also mentioned that adequate provisions
have been made for probable losses on one of the claims.
Late last year, the city of Houston alleged that Office Depot overcharged
it by as much as $6.6 million, the South Florida Business
Journal reported.
Office Depot has denied these allegations in several cases even
though it was required to refund $1.7 million to the city of Dallas
and $4.5 million to Florida for overcharges, the South Florida
Business Journal noted.
Arizona’s Maricopa County in October also demanded a refund
of $5.3 million in overcharges, the South Florida Business Journal
For more information on Office Depot’s state contract problems,
visit the State Contract Watch section of the INDEPENDENT
DEALER web site (

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