University Loft pays $400,000 settlement
Company disputes claims, but decides to settle
Thomas Russell -- Furniture Today, June 30, 2009
WASHINGTON — Contract living room and bedroom furniture specialist University Loft has agreed to pay the U.S. government $400,000 as part of a settlement announced this week.The settlement stemmed from a suit filed by competitor Furniture by Thurston alleging that University Loft sold Malaysian-made furniture to the government in violation of the Trade Agreements Act.
Furniture by Thurston will receive a $66,000 share of the settlement under the False Claims Act. This allows private citizens to file suit on behalf of the government and share in recovery proceeds.
Indianapolis-based University Loft disputed the claims and admitted no wrongdoing in the case. In a statement, the company said it decided it was more cost-effective to settle rather than litigating the case.
University Loft said the main issue in the case was whether it was allowed to ship furniture directly from Malaysia to overseas U.S. military bases. It said that government contracting officials authorized it to ship the goods directly from Malaysia, which would in turn save the government hundreds of thousands of dollars in shipping costs.
However, the Department of Justice determined this was still not permitted under the Trade Agreements Act.
In a statement, company owner James Jannetides said, "The most frustrating thing about this case was that it distracted us from serving our customers. Moreover, given the potential high cost of protracted litigation against the DOJ, it was prudent to get this behind us in spite of the merits of the case. We look forward to continued good relations with our government customers."
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The press release was very interesting, the government was very careful to use the words, "alleged" which means that there was a case that was never truly determined, however the remainder of the government's release implicated guilt. It seems another situation where one branch of our government was putting another branch in their place for overstepping their authority and this furniture company got caught in the middle, in this day and time, that is awfully expensive politics.
Dale Neal - 2009-1-7 14:48:35 EDT -
Typical, a company tries to save the Gov money aka (our tax dollars) and they get sued by compition and the government. Sounds like sour grapes by Thurston, just plain stupidity and a waste of time.
William Sparks - 2009-30-6 18:44:59 EDT -
How is a furniture company supposed to fight a legal team provided and financed by the federal government ? If they had won, they lost the legal fees. You cannot sue to government for legal fees in defending yourself against a stupid lawsuit.
Another anti business practice by the Federal Bureau of Run You Out of Business and Tax You to Death.
David Hips - 2009-30-6 15:06:04 EDT
Veterans join University Loft
01/06/2008Jarnagin, McArthur join University Loft
12/26/2007University Loft adds 3 execs
09/30/2006
