Schneiderman settles school lunch case for $18M

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Schneiderman settles school lunch case for $18M

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ALBANY, N.Y. (AP) - New York Attorney General Eric Schneiderman says his office has settled an investigation for $18 million into seven years of overcharges by a food company serving 39 school and public lunch programs statewide.

The settlement with Compass Group USA Inc. requires it to repay almost $3 million to the schools for vendor discounts that Schneiderman says by law should have been passed on.

The attorney general says Compass staffs and supplies food services at schools like Manhattan Day School and the Schenectady City School District through its subsidiary, Chartwells.

The state is expected to get about $15 million from damages and penalties under New York's False Claims Act.

Schneiderman says Compass "improperly profited" by overcharging taxpayers and shortchanging schools.

Charlotte, N.C.-based Compass said it had misinterpreted its New York contracts.

(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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Schneiderman settles school lunch case for $18M - NEWS10 ABC: Albany, New York News, Weather, Sports

Schneiderman settles school lunch case for $18M

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