Sodexo Settles Illegal Rebate Charges

Normal001915214163911.773000Sodexo has reached a $20 million settlement with the state of New York to settle charges that it had overcharged 21 New York school systems and the State University of New York (SUNY) system by withholding rebates it received from suppliers. The charges stemmed from a whistleblower investigation by the attorney general’s office that Sodexo failed to acknowledge rebates from suppliers in violation of the contracts as well as state and federal laws, said the attorney general’s office in a statement announcing the settlement. The schools and the SUNY system contracted with Sodexo for foodservice, vending and facilities services. On average, Sodexo received 14 percent rebates.