Aramark Sues NY School District

Aramark Educational Services is suing New Rochelle (NY) Schools, alleging that district officials decieved the company by misrepresenting the number of meals the district serves to students and underestimating the cost of labor when soliciting a foodservice contract, reports the Lower Hudson Journal News. The company is asking for a judgment of $405,031.66 plus interest and attorney fees.

"This is an action for breach of contract, fraud, negligent misrepresentation and frauds designed to induce Aramark to enter into a contract, and the district's failure to satisfy outstanding financial obligations owed to Aramark," the lawsuit states. Aramark's court filings allege that during contract discussions, New Rochelle officials overstated by the number of meals served at district schools by 180,000. Aramark had signed a food-services contract with the district in June 2006 and currently continues to operate foodservices for the district under a third consecutive one-year deal.