State Sues Two Schoolbook Publishers for Alleged Overcharging

Companies that rely on government contracts must be cognizant of the complex legal framework associated with these agreements. Actions that might not raise any concern when dealing with private businesses could lead to litigation and other sanctions if they violate federal or state contract rules. Recently, the Florida Attorney General initiated legal action against two schoolbook publishers for allegedly providing advantageous terms to certain school districts within the state. 

Attorney General James Uthmeir has filed a lawsuit against McGraw Hill and Savvas accusing them of violating Florida's False Claims Act. This law prevents contractors from charging higher prices to certain counties or districts within the state. One allegation says that Miami-Dade received a discount for a book that was not provided to nine other counties. Another claim says that certain materials were furnished for free in some cases, but not in others. In all, the state says that the discrepancies could amount to a total exceeding $60 million. 

McGraw Hill and Savvas deny that they engaged in unlawful pricing practices. Of course, targeted discounts and complimentary merchandise are everyday sales techniques for book publishers when negotiating with private buyers. However, a company offering goods or services to a government body could find themselves fighting a lawsuit if an individual deal, or an overall pattern of sales, conflicts with the standards that apply to these transactions. 

Regardless of whether Attorney General Uthmeir’s complaint is supported by the facts, no business wants to be on the wrong end of a lawsuit or regulatory action. If your company is seeking a government contract, it’s imperative to consult with an experienced attorney who can help you steer clear of potential problems. In the event that a compliance issue arises or a potential breach occurs, strong legal counsel can be the difference between a successful resolution and an ongoing problem for your business. 

H. Clay Parker, Esq. The Florida Lawyer advises companies on a full range of issues relating to the development and negotiation of contracts. Our Orlando firm also represents parties in litigation relating to contractual disputes throughout the state. For an appointment to discuss your particular legal needs, please call [ln::phone] or contact us online.