Compass Pays $18M After Overcharging On NY School Lunches

Law360, New York (September 19, 2012, 3:08 PM EDT) -- Compass Group USA Inc. has paid an $18 million settlement after an investigation showed it overcharged 39 New York state schools and school districts for lunches, New York's attorney general said Wednesday, announcing the office's largest recovery so far under the state's new False Claims Act.

The North Carolina-based food services giant, which takes in $9 billion in annual revenue and employs 175,000 workers, failed to disclose, or pass along, money it received in the form of rebates from food vendors, according to an agreement between...
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