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.
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95-251