Sodexo Agrees to Settle Overcharging New York Food Service Clients for $20 Million

Sodexo, the world’s largest private food purchaser, has agreed to settle claims that it overcharged New York state school districts and the State University of New York from 2004 until 2009.  For $20 million, Sodexo will settle the claims of 21 public school districts and SUNY that Sodexo failed to pass along rebates it received from the suppliers of the food and equipment.  Under the contracts with the various entities and under federal and state laws, Sodexo was required to acknowledge or pass on the rebates. The settlement is the largest under the New York State False Claims Act that does not involve Medicaid Funds.

For more information, see http://www.ag.ny.gov/media_center/2010/july/july21a_10.html