Facts

The People of the State of California filed a lawsuit against defendants for civil penalties, injunctive relief, and other equitable relief.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that certain of Sysco Corp.'s wholly-owned subsidiaries in California, held perishable food products in unregistered public storage sites that did not contain adequate refrigeration. Plaintiff's further alleged that employees of these defendants transported perishable food items from the unregistered sites to customers using personal vehicles that did not have adequate refrigeration and which exposed such food to the risk of contamination.

Result

As provided for in the negotiated settlement, the court entered a final judgment and injunction, which prohibited defendants from transporting certain food products in personal, non-commercial vehicles. The defendants were also enjoined from holding certain food products in unregistered sites, and from selling food products that became "adulterated" or "misbranded" as a result of being placed in an unregistered site. Under the stipulated judgment, defendants agreed to pay $3,300,000 in restitution to the Department of Public Health to fund a food transportation enforcement program. Defendants were also ordered to distribute fresh food products with a wholesale value of $1,000,000 to food banks in the state. Defendants will also pay $15,000,000 in civil penalties, $127,490 in investigative costs, and $3,480 in court fees.