Attorney General’s Office Alleges Companies Violated State Law by Charging School Districts More Than Lowest Offered Prices
Florida Attorney General James Uthmeier announced Tuesday that his office has filed a lawsuit against major educational publishers McGraw-Hill LLC and Savvas Learning Company LLC, accusing them of systematically overcharging the state’s school districts for instructional materials.
The lawsuit, filed in the Second Judicial Circuit Court, claims the companies violated state law and the Florida False Claims Act by failing to provide Florida schools with the lowest prices and best deals offered to other districts.
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According to a press release from the Attorney General’s office, the complaint asserts that McGraw-Hill and Savvas did not comply with Florida’s statutory pricing requirements.
Under Florida law, publishers are mandated to give every Florida school district the best price they offer anywhere in the nation, automatically pass on any price cuts, and provide free materials to Florida schools whenever such materials are given away for free elsewhere.
“Our lawsuit exposes a textbook case of corporate greed—companies charging Florida schools more than the law allows, pocketing the difference, and sticking taxpayers with the bill,” said Attorney General James Uthmeier in a statement. “Florida will not be a playground for deceitful profiteers who think they can cheat our students and teachers. We will make sure they pay back every dime and face the full consequences under the law.”
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The lawsuit, which stemmed from a whistleblower complaint filed under the Florida False Claims Act, alleges that McGraw-Hill and Savvas knowingly charged some Florida school districts higher prices than they offered to others for the same materials.
The complaint details specific instances, such as McGraw-Hill allegedly charging Madison County and Miami-Dade County significantly more for materials that were sold at a discounted rate to Polk County. Similarly, Savvas is accused of providing free materials to Miami-Dade County as part of a “buy 9, get 1 free” deal that was not extended to other districts like Sarasota, Nassau, and Franklin counties.
The state contends that these actions resulted in substantial overpayments by Florida school districts, with the financial burden ultimately falling on Florida taxpayers. The complaint seeks treble damages—a penalty that allows for the recovery of three times the amount of the overcharged funds—along with civil penalties to deter future violations.
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The lawsuit highlights the crucial role of the Florida False Claims Act, which empowers individuals, or whistleblowers, to bring actions on behalf of the state against entities that knowingly submit false or fraudulent claims for payment. In this case, the investigation was initiated following such a complaint, leading to the state’s intervention.
The educational publishers have not yet publicly responded to the allegations. The outcome of the lawsuit could have significant financial implications for both the companies and the state of Florida, as it seeks to recover funds and enforce the pricing laws designed to protect public education spending.
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