Toyo Ink to Pay $45 Million to Resolve False-Claims Case

Toyo Ink SC Holdings Co. (4634) and affiliates agreed to pay $45 million to settle allegations of submitting false claims to the U.S. government to avoid import duties.

Toyo Ink, a printer-ink maker based in Tokyo and affiliated companies in the U.S. disguised products’ country of origin on documents given to U.S. Customs and Border Protection for eight years starting in 2002, the government said today in a statement.

“Fair and lawful trade requires importers to truthfully identify their products and pay the appropriate duties,” U.S. Attorney Anne M. Tompkins in Charlotte, North Carolina, said in the statement.

Toyo Ink, without admitting liability, agreed to the $45 million payment, of which John Dickson, who brought the case under the federal False Claims Act, will receive $7.87 million, according to a settlement agreement in federal court in Charlotte.

Nancy Ikehara, a spokeswoman for Toyo Ink, didn’t immediately respond to an e-mail message seeking comment.

The case is U.S., ex rel. Dickson v. Toyo Ink Manufacturing Co., 09-cv-00438, U.S. District Court, Western District of North Carolina (Charlotte).

To contact the reporter on this story: Tom Schoenberg in Washington at tschoenberg@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net.

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