Sodexo Fined $20M For School Meal Fraud

Photo: Refracted Momentsâ„¢ (flickr)

Officials were tipped off thanks to the New York False Claims Act, which gives whistleblowers protection when speaking out against unlawful practices.

Food service giant Sodexo settled with the state of New York over complaints that it had been overcharging public schools for five years.

New York Attorney General Andrew Cuomo announced on Wednesday that Sodexo is to pay $20 million for pocketing rebates from food manufacturers. The rebates belonged to the state school system and Sodexo will pay the fine directly to 21 New York public school districts and the State University of New York.

The settlement is just part of an ongoing industry-wide investigation.

Read more:

• Food services giant Sodexo pays $20 million to settle claim it overcharged NY schools (The Buffalo News)
• Sodexo to pay New York $20 million for school-meal rebate fraud (Grist)

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