AP & Wire Services: FEDS & STATES INVESTIGATE OFFICE DEPOT
FEDS OPEN INVESTIGATIONS OF FRAUD AND OVERCHARGING ON GOVERNMENT CONTRACTS BY OFFICE DEPOT February 26, 2009
Office Depot has confirmed that the United States Department of Justice (DOJ) is coordinating investigations by the U.S. Department of Defense (DOD), U.S. Department of Education (DOE), and the U.S. General Services Administration (GSA), into Office Depot pricing on government contracts. These investigations follow on the heels of investigations launched as the result of a Florida whistle-blower, by the states of Florida, North Carolina and Missouri. The whistle-blower has alleged that Office Depot has fraudulently overcharged federal, state and local agencies over $100 million annually, and that all 50 states have been victimized.
AP: Associated Press 2.25.09 Office Depot says federal government investigation pricing for office supplies CHICAGO (AP) -- The federal government has launched an investigation into the prices that Office Depot Inc.'s charges federal agencies for office supplies, according to a regulatory filing. The joint investigation by the U.S. Department of Defense, the Department of Education and the General Services Administration are being coordinated by the Department of Justice, the company said. They come on the heels of at least two state investigations into similar complaints. Office Depot, based in Boca Raton, Fla., said it was cooperating with investigations in Florida and in Missouri, where the attorney general contends the company overpriced government contracts for office & school supplies. A North Carolina audit said the office supply company overcharged that state almost $300,000 for school supplies, while Georgia canceled its state contract with Office Depot because of pricing errors. Auditors in other states have said the company overcharged for items such as staples or scissors. "No claim for relief has been made in any of these matters and management cannot predict their ultimate outcome," Office Depot said in its annual regulatory filing, which was submitted to the Securities and Exchange Commission on Tuesday. The company added that it doesn't believe any of the investigation will have a material affect on business and a spokesman declined further comment on Wednesday. Office Depot has said that state and local governments are among its biggest clients. A spokesman for the Missouri Attorney General's office last month called Office Depot's government contract troubles a "national problem."
You are absolutely correct. This is old news. Personally I could never own this POS but you could get a bit more out of it on the upside. If you are serious about $6.00 think about lowering your target to 1.75
I believe these articles are just a few of many. Mostly this is covered on the regional level, when one of the senior executives at Depot HQ is led away in hand cuffs, you will get all the national coverage you can stand. There are too many investigations going on for this to be just smoke, the only question is, just how bad is the fire?