Source: New York Attorney General Andrew M. Cuomo news release, July 21, 2010
Attorney General Andrew M. Cuomo announced today a $20 million settlement with food services provider Sodexo for overcharging 21 New York school districts as well as the SUNY system.
An Attorney General investigation found that the company promised to provide goods at cost but failed to acknowledge rebates from suppliers, resulting in illegal overcharges to the schools. The investigation was sparked by former employees of Sodexo under the New York False Claims Act, which allows whistleblowers to come forward to disclose wrongdoing without fear of retribution. The settlement was unsealed in Federal Court in Massachusetts and is the largest monetary settlement under the Act that does not involve Medicaid funds.


