Class Members Eligible for US Food Service Pricing Settlement:
Any company or individual in the United States who purchased products from U.S. Foodservice, Inc., now known as US Foods, Inc. (“USF”), pursuant to an arrangement that defined a sale price in terms of a cost component plus a markup (“cost-plus arrangement”), and for which USF used a Value-Added Service Provider (“VASP”) transaction to calculate the cost component, is a Class Member. USF was formerly owned by the Dutch retailer, Ahold, and is now owned by private equity investors. If you purchased products from USF pursuant to a cost-plus arrangement at any time during the period of 1998 through 2005, when the alleged VASP system was in place, you may be a Class Member. The alleged VASPs were (i) Seafood Marketing Specialists, Inc., (ii) Frozen Farms, Inc., (iii) Produce Solutions, Inc., a/k/a Cross Valley Produce, Inc., (iv) Private Labels Distribution, Inc., a/k/a Private Brands Distribution, Inc., (v) Specialty Supply & Marketing, Inc., and (vi) Commodity Management Systems, Inc.
You are NOT a Class Member if you purchased products from USF between 1998 and 2005, but did NOT have an agreement with USF (either written or oral) that your price would be calculated based on a cost for the product plus an agreed-upon markup, margin, or pet case fee, or if you had such an agreement but you did not make purchases from USF for which a VASP invoice was used to calculate the price.
US Food Service Pricing Settlement Case History:
The lawsuit is about whether USF, between 1998 and 2005, improperly inflated the purported “cost” of goods it sold to its customers with cost-plus purchasing arrangements, and thereby breached its contracts with those customers and violated federal Racketeer Influenced and Corrupt Organizations Act (“RICO”) laws. USF denies that it did anything wrong, and says that it did not “overbill” its customers, but rather calculated prices as allowed under its contracts, which permitted it to set prices based on the food’s “cost” to a USF distribution center as that term is defined under the contracts. USF further contends that it was entitled under the contracts to set such cost from the invoices issued by the VASPs, and to receive the VASPs’ mark-up on the sales at issue as a rebate that did not reduce the cost. USF also contends that the VASPs mostly sold products that were marketed under USF’s own private label and that it was understood and permitted under the contracts that USF could set the costs for such products. According to USF, the VASPs were important vendors that provided necessary services in USF’s supply chain particularly in the creation of USF’s private label products, USF further asserts that its pricing practices were consistent with foodservice industry standards, that neither the VASPs nor the pricing practices were hidden from customers, and that customers did not make purchases based on any misunderstanding about its pricing practices.
Why is there a US Food Service Pricing Settlement?
The Court did not decide in favor of the Plaintiffs or USF. Instead, both sides agreed to a settlement. That way, they avoid the cost of a trial, and the customers affected are certain to get compensation (unlike in a trial where there is a possibility that the plaintiffs will not get compensation). The Class Representatives and Class Counsel think the settlement is best for all Class Members.
Our Class Action Settlement Services:
CAC Recovery navigates the complex intricacies of the US Food Service Pricing Settlement claims filing process to help businesses maximize their settlement recoveries.
Our class action settlement services include:
- Identifying class action claims where businesses may be eligible to file
- Filing the class action claim with supporting documentation
- Interacting with the class action Claims Administrator
- Providing updates on class action claim settlements status
- Resolving Claims Administrator questions on claims
- Reviewing the recovery to assure the correct compensation claims amount has been received
Our Guarantee: We Get Paid When You Recover – No hidden charges or up-front fees. We provide our class action settlements services based on a contingency fee.
Getting Started is easy! If you represent a business we’ll first have you fill out our ‘Get Started‘ form and a CAC representative will contact you within 24 hours to review your eligibility and walk you through the US Food Service Pricing Settlement claims process.