Grainger to pay $70 mln on claims it overcharged US government

WASHINGTON Wed Dec 26, 2012 4:10pm EST

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WASHINGTON Dec 26 (Reuters) - W.W. Grainger has agreed to pay $70 million to resolve assertions that the hardware distributor overcharged federal government agencies, the U.S. Justice Department said on Wednesday.

The company had contracts with the General Services Administration (GSA) and the U.S. Postal Service. The Justice Department said that Grainger's GSA contract required disclosure of commercial pricing policies but an audit showed that it had failed to provide accurate information.

The Justice Department said that Grainger also had failed to meet obligations to provide the Postal Service with "most-favored customer" prices.

A Grainger representative did not immediately respond to a request for comment.

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