Florida sues textbook publishers for allegedly overcharging schools by millions of dollars

Florida files lawsuits against textbook publishers

Florida Gov. Ron DeSantis and Florida Attorney General James Uthmeier joined together Tuesday morning in St. Cloud to announce actions being taken against textbook companies that they say have "exploited Florida taxpayers." Uthmeier said his office has filed a lawsuit against McGraw Hill LLC and Savvas Learning Company LLC.

ST. CLOUD, Fla. - Florida Gov. Ron DeSantis and Florida Attorney General James Uthmeier joined together Tuesday morning in St. Cloud to announce a lawsuit being filed against two textbook companies that they say have "exploited Florida taxpayers" after overcharging school districts by millions of dollars.

Lawsuit filed by AG Uthmeier

What we know:

Uthmeier said his office has filed a lawsuit against McGraw Hill LLC and Savvas Learning Company LLC, accusing the companies of systematically overcharging Florida school districts for instructional materials in violation of state law and the Florida False Claims Act.

The complaint, filed in the Second Judicial Circuit Court, states that the companies failed to comply with Florida’s statutory pricing requirements for instructional materials adopted for statewide use. 

Under Florida law, Uthmeier said publishers must give every Florida school district the best price offered anywhere in the nation, automatically extend any price cuts made available elsewhere and provide free materials to Florida schools whenever they are provided free to others.

According to the state’s claims, McGraw Hill and Savvas knowingly charged certain Florida school districts more than the lowest price they offered to other districts, and withheld cost reductions required by statute. The lawsuit contends that these violations resulted in substantial overpayments from Florida’s school districts and, ultimately, from Florida taxpayers.

DeSantis said the State of Florida intervened in the lawsuit after an investigation initiated under the Florida False Claims Act, which allows whistleblowers, known as relators, to bring actions on behalf of the state against entities that knowingly submit false or fraudulent claims for payment. The complaint seeks treble damages and civil penalties to prevent future violations.

The governor said the textbook companies have been "exploiting our school districts at the expense of our taxpayers and at the expense of our students." He said some of the school districts were being overcharged millions of dollars for instructional materials. 

DeSantis gave a local example in Osceola County, where he said the school district was overcharged more than $279,000. With trouble damages, and additional penalties, DeSantis said this amounts to Savvas Learning Company having to pay a penalty fee of more than $837,000 in damages for just one textbook sold to one school district in one year.  

‘Corporate greed’

What they're saying:

"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," Uthmeier said. "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."