FreshPoint Settles Contract Fraud Claims For $4.2M; Whistleblower to Get $800K

FreshPoint Inc. has agreed to pay $4.2 million to resolve allegations, under the False Claims Act, that it overcharged the Department of Defense for fresh fruit and vegetables purchased under 15 separate contracts, the Justice Department announced today.

FreshPoint, a food distribution company and wholly owned subsidiary of Sysco Corp., allegedly overcharged the government on hundreds of sales of fresh fruit and vegetables by improperly inflating its prices to the government.  The government alleged that this practice violated FreshPoint’s contracts with the government that required FreshPoint to provide the produce at cost, plus a pre-established mark-up for profit, and did not allow FreshPoint to make additional price adjustments based upon perceived changes in market prices.

The lawsuit was originally filed by Charles Hall, a former FreshPoint employee, under the whistleblower provisions of the False Claims Act.  The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Hall will receive $798,000 as his portion of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.