New York Settles With Sodexo Over Overcharging

July 23, 2010

Sodexo has agreed to pay $20 million to settle issues raised by an investigation by Andrew M. Cuomo, New York State's attorney general, into allegations that the company overcharged the State University of New York System and 21 school districts in the state. The dispute involves a pledge by the company to provide goods at cost -- a pledge that the state says the company violated by failing to acknowledge significant rebates from suppliers.

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