FOR IMMEDIATE RELEASE CIV FRIDAY, JANUARY 6, 1995 (202) 616-2765 TDD (202) 514-1888 RUBBERMAID, WASHINGTON, D.C., FIRM AGREE TO $1 MILLION SETTLEMENT WASHINGTON, D.C. -- Rubbermaid Commercial Products Inc., a major company in the service products industry, will pay the United States $887,000 to settle allegations it overcharged the government $5.5 million for products it sold to federal agencies, the Department of Justice announced today. Lewis & Sons Inc. of Washington, D.C., Rubbermaid's sales representative, also will pay the United States $113,000 as part of the settlement. Assistant Attorney General Frank Hunger of the Civil Division said the settlement resolves charges brought against Rubbermaid, based in Winchester, Va., by a former employee, Ned Miller, who filed a complaint against the company under the qui tam provisions of the False Claim Act in U.S. District Court in Harrisonburg, Va., in 1993. The government intervened in November 1993. According to the complaint, Rubbermaid and Lewis & Sons failed to tell contract negotiators for the General Services Administration that Rubbermaid gave its customers discounts larger than those it disclosed to the government, resulting in higher prices for federal agencies. The contract solicitations and federal law required Rubbermaid to provide accurate information to the government negotiators. From 1984 through 1992, Rubbermaid won 16 federal contracts with a total value of about $5.5 million to furnish federal agencies with food service and cleaning products, waste baskets and trash bins. Under the agreement, Miller will receive $185,000. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and prosecutes it successfully. The case was investigated by the GSA's Office of Inspector General and the Civil Division, which negotiated the settlement. ##### 95-011