This was a class action lawsuit filed by a couple in the Adel-DeSoto-Minburn school district. The premise of their suit was that Martin Brothers Distributing Co. conspired to restrain competition in the market for the retail sale of food to schools and that Martin Brothers attempted to monopolize that market in violation of Iowa antitrust laws.
This case has been in process for over three years, as Martin Brothers was not willing to settle the case because they did not believe the suit’s claims were valid. After further consultation with their attorneys, Martin Brothers decided to limit their legal fees and attempt to reach a settlement through mediation.
The settlement agreement was filed with the Clerk of District Court in Dallas County on July 31, 2014. Key points of the settlement include:
- Martin Brothers will pay $1,925,000 to create a settlement fund that will provide monetary relief to the settlement class.
- The settlement class is anyone who paid for a school lunch between January 1, 2000, and July 31, 2014.
- A third party will arrange to have notices published in an attempt to reach 88 percent of Iowa’s residents. This means that notices will be published in 14 of Iowa’s largest newspapers. The notice will direct interested persons to a website.
- Individuals in the settlement class may complete and submit paperwork to receive reimbursement. Individuals in the class may receive $3.50 for each year they attended a participating school district up to a maximum of $50.
- Any funds remaining after attorney’s fees and class members receive their payments will be paid to participating school districts on a pro rata basis.
Information on the settlement can be found at http://www.iowaschoolfoodsettlement.com/.
The Iowa Association for Educational Purchasing remains committed to its mission of helping schools save money and provide students with the best meal choices.
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