US Foods in $330K settlement with NY state
THE ASSOCIATED PRESS December 19, 2013 8:22AM
Updated: December 19, 2013 8:24AM
Rosemont-based US Foods will pay a $330,000 settlement for overcharging dozens of institutions across New York state by failing to pass on cost savings from manufacturers, New York Attorney General Eric Schneiderman said.
Schneiderman announced Wednesday that food distributor will pay $200,000 to 67 state and local organizations and another $130,000 to the Attorney General’s Office for the cost of the investigation.
Schneiderman says the probe found that starting in April 2009, US Foods failed to disclose and pass along the cost-saving discounts the company received from suppliers for meeting certain sales goals.
The institutions overcharged include homes for the elderly and disabled, schools, the New York State Museum and the state Senate.
Under the terms of its contract with the state, US Foods is required to pass on discounts to its customers.