False Claims Allegations Settled for US$6.25 Million
14 January 2011
The US Department of Justice (DoJ) has announced that Fastenal Company (Fastenal) has agreed to pay US$6.25 million to settle false claims allegations in relation to a General Services Administration (GSA) contract. Fastenal allegedly deliberately failed to provide the GSA with “current, accurate and complete information about its commercial sales practices, including discounts afforded to other customers”, in relation to the sale of hardware products to government customers. Additionally, it also overcharged government customers, defaulted on the reduction clause of its GSA contract and also incorrectly assessed tax charges on government sales.
DoJ’s media release (13 January 2011)