Office Depot, San Francisco Reach Settlement In Overcharge Flap
SAN FRANCISCO (CBS/AP) -- San Francisco has reached a $4.25 million settlement with Office Depot Inc. over allegations that the company overcharged for office supplies.
Mayor Edwin Lee signed a Board of Supervisors resolution Tuesday authorizing the settlement, which includes a $3.75 million payment and a $500,000 purchasing credit.
A 2009 audit by the city controller found that Office Depot deprived the city of an estimated $5.75 million in discounts mandated under its five-year, $18 million contract. Office Depot initially claimed the overcharges totaled less than $50,000 and were the result of accounting errors.
Office Depot spokesman Jason Shockley said the Boca Raton, Fla.-based company strongly disputes the audit's conclusions but views the settlement as "a reasonable compromise."
Last year, the company settled contract disputes with government agencies in Missouri and Florida.
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