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- Newsgroups: misc.activism.progressive
- Path: sparky!uunet!wupost!mont!pencil.cs.missouri.edu!rich
- From: Nigel.Allen@lambada.oit.unc.edu
- Subject: Virginia School Milk Case
- Message-ID: <1992Aug29.045919.2965@mont.cs.missouri.edu>
- Followup-To: alt.activism.d
- Originator: rich@pencil.cs.missouri.edu
- Sender: news@mont.cs.missouri.edu
- Nntp-Posting-Host: pencil.cs.missouri.edu
- Organization: Echo Beach
- Date: Sat, 29 Aug 1992 04:59:19 GMT
- Approved: map@pencil.cs.missouri.edu
- Lines: 48
-
- Here is a press release from the Attorney General of Virginia.
-
- Virginia Reaches Settlement With Pet Inc. in Milk Contract Case
- Contact: Deborah Love-Bryant of the Office of the Attorney General,
- 804-786-2435
-
- RICHMOND, Aug. 28 /U.S. Newswire/ -- Attorney General Mary Sue
- Terry today announced that her office has reached a settlement with
- Pet Inc. for $300,000 for its alleged participation in a conspiracy
- to rig milk contracts in 35 school systems in Central and Tidewater
- Virginia.
- This brings to over $1.6 million in damages the Attorney General
- has collected for those school districts.
- Terry, commenting on the settlement, said: "I am pleased that we
- were able to reach this settlement with Pet without having to file a
- lawsuit. Pet has acted responsibly in agreeing to compensate the 35
- school systems for the damages they suffered as a result of the
- bid-rigging scheme."
- In August 1991, Terry, on behalf of 35 school districts in
- Tidewater and Central Virginia, filed a civil suit against:
- * Land-O-Sun Dairies Inc. t/a Pet Dairy
- * Embassy Dairy Inc.
- * Maola Milk & Ice Cream Co. Inc.
- * Maryland and Virginia Milk Producers Cooperative
- Association Inc.
- * The Southland Corp.
- The suit sought damages against those companies for allegedly
- conspiring to fix prices for school milk contracts since at least as
- early as 1983 and charged that the companies violated federal and
- state law by:
- * divvying up school districts among themselves and agreeing among
- themselves who would submit the lowest bid;
- * deciding among themselves what the lowest bid price would be;
- and,
- * submitting noncompetitive bids in districts assigned other
- companies in order to create the illusion of competition.
- Terry's office previously reached settlement with The Southland
- Corp., Maryland and Virginia Milk Producers Cooperative Association
- Inc., t/a Marva Maid Dairy, and Maola Milk & Ice Cream Co. The
- settlements with those companies totaled $1,369,021 in damages and
- $217,500 in attorneys' fees and costs.
- Pet Inc. sold its dairy division in December 1985 to the company
- that became Land-O-Sun Dairies Inc. The commonwealth's claims
- against Land-O-Sun for activities after the sale remain pending in
- bankruptcy proceedings in Florida.
- -30-
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