Grainger Responds to Complaint From Former Employee

CHICAGO, Feb. 8  /PRNewswire-FirstCall/ -- Grainger today learned that the United States District Court Eastern District of Wisconsin Milwaukee Division had unsealed a complaint filed by a former employee alleging contract noncompliance in Grainger's General Services Administration (GSA) contract. The company first entered into the contract in 1999 and both parties agreed to extend the contract in 2004.

On December 13, 2007, the Civil Division of the U.S. Department of Justice informed Grainger of its concern that the company had not complied with the GSA contract's disclosure obligations and pricing provisions and had potentially overcharged government customers under the contract.  The Justice Department had indicated it is willing to meet to discuss these matters and Grainger anticipates that a meeting will soon be scheduled. The former employee's complaint that was unsealed appears to relate to similar matters.

Grainger is a service business.  Doing right by its customers is the top priority.  The company takes this allegation seriously.  Although Grainger believes the company has fully complied with its contract, it intends to carefully review the allegations to ensure it meets its obligations to its customers. 

DATASOURCE: W.W. Grainger, Inc.



CONTACT: Ernest Duplessis, VP, External and Internal Communications,

[phone], , or Robb Kristopher, Director,

Regional Communications, [phone], , both

of W.W. Grainger, Inc.



Web site:  http://www.grainger.com/ 

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