Meet&CoSAN FRANCISCO — Vari, a Texas-based provider of office furnishings including standing desks, has agreed to pay $1.1 million to resolve allegations of violating the False Claims Act by allegedly failing to extend equivalent pricing discounts to U.S. government agencies that it offered to commercial clients.
The settlement, announced by the U.S. Attorney’s Office for the Northern District of California, addresses claims that Vari breached the terms of a 2016 Multiple Award Schedule contract with the General Services Administration (GSA). Under this agreement, federal purchasers were entitled to streamlined access to Vari’s products at prenegotiated rates, contingent on the company ensuring that GSA received pricing discounts matching those provided to designated commercial customers, known as the “basis-of-award” group.
A contractual price-reduction clause obligated Vari to promptly notify the GSA and adjust government pricing if deeper discounts were granted to basis-of-award customers. Authorities allege that between December 8, 2016, and June 30, 2019, the company knowingly neglected to disclose such discounts, resulting in inflated charges to federal agencies.
“Contractors are expected to uphold transparency and integrity in their dealings with the government,” stated Acting U.S. Attorney Patrick D. Robbins. “This settlement underscores our commitment to safeguarding taxpayer resources and enforcing accountability under the False Claims Act.”
Robert Erickson, GSA Deputy Inspector General, emphasized the importance of compliance, noting, “Overcharging federal agencies undermines public trust. We commend the collaborative efforts of investigators and legal teams in addressing this matter.”
The case originated from a whistleblower complaint filed under the False Claims Act’s qui tam provisions by Eliot Balis, a former Vari sales executive. As part of the settlement, Balis will receive $187,000 of the recovered funds.
It is important to note that the resolution constitutes neither an admission of liability nor a determination of wrongdoing by Vari. The settlement addresses allegations that remain unproven in court.
