The Fastenal Company, Winona, MN, No. 9 on MDM's list of the top 40 industrial distributors, is facing potential litigation by the government, which notified the distributor this month that an audit found it may have overcharged government customers, Fastenal said in its latest quarterly report filed with the SEC.
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"We have communicated our disagreement with the audit report," Fastenal said, "and have participated in several meetings and discussions with the OIG and DOJ on these disputed issues during the past several years."
The contract in contention was entered into with the U.S. General Services Administration in 2000. The contract was discontinued in 2005.
The Department of Justice has offered to resolve the situation for a payment of $9.5 million, according to the Fastenal filing. Fastenal said it offered $750,000.
"We continue to believe that we have complied with our obligations under the GSA contract in all material respects," Fastenal said.