US Foods announced today that its former parent company, Ahold, has signed a term sheet agreeing in principle to settle a class action pending in the United States District Court for the District of Connecticut relating to U.S. Foodservice pricing practices between 1998 and 2005. US Foods operated as U.S. Foodservice prior to 2011.
Ahold indemnified US Foods against damages arising from this suit as part of the terms of the purchase of US Foods by Clayton, Dubilier & Rice and Kohlberg, Kravis Roberts & Co in 2007. Specific details about the settlement are available in Ahold’s press release (LINK) about the settlement.
Juliette Pryor, Executive Vice President, General Counsel and Chief Compliance Officer of US Foods noted, “We’re pleased that this settlement provides final resolution to this legacy litigation.”
“We are proud of the work being done today by US Foods employees across the country, bringing food and food people together to make it easier for our customers to succeed,” commented John Lederer, President and Chief Executive Officer of US Foods. “The resolution of this issue allows us to continue our commitment to Keeping Kitchens Cooking across America.”
About US Foods
US Foods, Inc. is a large foodservice distributor serving chefs and foodservice operators across the country. Its customers include independent and multi-unit restaurants, healthcare and hospitality entities, government and educational institutions. The company employs approximately 25,000 people in 61 locations nationwide. US Foods is headquartered in Rosemont, Ill.