17 States Charge B&T with Discount Fraud

Staff -- School Library Journal, 9/1/1998

Seventeen states have asked to join a federal lawsuit accusing Baker & Taylor, the nation's largest book wholesaler, of overcharging schools and libraries on book purchases.

The lawsuit, filed in federal court in San Francisco on July 14, calls for refunds on alleged overcharges, estimated at $100 to $200 million. The plaintiffs also seek civil penalties for fraud.

The existing federal suit, brought by the U.S. Department of Justice in February 1997, charges that the Charlotte, NC-based book wholesaler promised discounts of 40 percent or more for trade books, but instead applied discounts of 25 percent or less. These lower discounts are normally applied to books with higher quality library bindings.

But Jim Ulsamer, President of B&T Books, attributes the charges to political motives and cites "continued strong support" from customers.

Leading the suit are the Attorneys General in Minnesota, Missouri, and North Carolina, plus those in Arkansas, Connecticut, Florida, Hawaii, Idaho, Kentucky, Massachusetts, Nevada, New Mexico, Oklahoma, Tennessee, Texas, Vermont, and Wisconsin.