SAVANNAH, Georgia (AP) - Federal prosecutors say a subsidiary of the Sysco Corporation has agreed to a $4.2 million settlement over false claims related to produce sales to the Department of Defense.
U.S. Attorney's officials in the Southern District of Georgia said Monday that FreshPoint, Inc. was accused of overcharging the government for produce sales between December 2007 and September 2009.
Officials say the company added arbitrary price markups to some of its goods. Government officials said the markups were a violation of a contract between the Department of Defense and the company.
The settlement is the result of a whistleblower lawsuit that was filed by a former FreshPoint employee, who will receive a portion of the settlement's proceeds.