iler Ahold, the former parent company of US Foods Inc., has settled a class action lawsuit for $297 million based on allegations that for years it wrongfully inflated prices.The suit, filed by a handful of companies including Catholic Healthcare West and Tomas & King, charged Ahold with using an intermediary to overcharge its customers between 1998 and 2005. Ahold's US brands include Giant, Stop & Shop, and online grocery delivery service Peapod.
US Foodservice had presented a higher turnover in annual reports than what was actually achieved. US Foodservice was sold for €7 billion in 2007, but Ahold remained accountable for the court cases which were subsequently taken against it.
"In return, all parties will release their claims in relation to these pricing practices", the company said in a press release.
Ahold have until the beginning of 2015 to pay the settlement.
Former Ahold CEO Cees van der Hoeven lost his job because of the scandal and he was given a €30,000 fine. Former CFO Michiel Meurs received a six-month suspended jail sentence, 240 hours of community service and a €100,000 fine. Former board member Jan Andreae received a three-month suspended jail sentence and a €50,000.
