Grocer Pays $15M To Settle Case Over US Troop Food

Law360, New York (November 19, 2010, 6:51 PM EST) -- American Grocers Ltd. has agreed to pay $15 million to settle a False Claims Act suit that accused the company of overcharging the U.S. for out-of-date food shipped to troops in the Middle East.

The complaint and court proceedings, initiated in 2005 by a whistleblower at the company, had been under seal in the U.S. District Court for the Southern District of Texas until Friday, when the U.S. Department of Justice announced the settlement.

The department said that Houston businessman Samir Itani and his grocery company...
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