FOR IMMEDIATE RELEASE CIV THURSDAY, MAY 4, 1995 (202) 616-2765 TDD (202) 514-1888 FURNITURE COMPANY PAYS U.S. $800,000 TO SETTLE ALLEGATIONS IT FAILED TO INFORM GOVERNMENT ON CONTRACTS WASHINGTON, D.C. -- The American Seating Company of Grand Rapids, Michigan, has paid the government $800,000 to resolve allegations it overcharged the United States for "systems" furniture, the Department of Justice announced today. Assistant Attorney General Frank Hunger of the Civil Division said a panel of mediators entered an award in favor of the United States in a suit brought under the False Claims Act in U.S. District Court in Kalamazoo, Michigan, in 1993. The company agreed to pay the amount recommended by the mediation panel. The complaint alleged that American Seating failed to inform government negotiators fully about discounts it gave to various commercial customers. American Seating was required by the contract solicitation and federal law to provide accurate information to GSA contract negotiators. American Seating won a three-year $30 million contract with the General Services Administration for systems furniture in 1985. The contract set the prices, terms and conditions under which federal agencies could purchase products from American Seating. Systems furniture is furniture that can be adapted to fit specific work areas. The case was investigated by the Office of Inspector General of GSA and the Civil Division. The Civil Division handled the litigation and the mediation. ##### 95-251