Oklahoma school district settles fraud lawsuit

YUKON, Okla. (AP) – Public school officials in suburban Oklahoma City have approved a private financial settlement with a food distribution company accused of fraudulently overcharging the district by more than $700,000.

The Oklahoman reports that terms of the settlement between Yukon Public Schools and the food distributor, Sysco Oklahoma, weren’t revealed in the federal court lawsuit. Attorneys say a nondisclosure agreement approved by the school district and the food distributor prohibits them from discussing that information.

Court documents show that allegations of overcharges by Sysco were first brought to the attention of school administrators more than four years ago by Cost Defender, a company that audits and identifies overbillings on a contingency fee basis.

Sysco Oklahoma is a regional branch of a multinational food distribution company that earns $55.4 billion in annual sales.