North Iowa families may receive cash back for overpaid for school lunches

ADEL, IA – A settlement reached in a class action lawsuit may yield some cash for folks with children in North Iowa schools.

In the lawsuit, it was alleged that Iowa Educators Corporation, its successor, The Iowa Association for Educational Purchasing, and Martin Brothers Distributing Company, Inc., conspired to restrain competition in the market for the retail sale of food at schools in Iowa and that Martin Brothers attempted to monopolize that market in violation of Iowa antitrust laws.

The defendants deny they did anything wrong and assert that the bidding for school food service distribution was fair and appropriate and that they have reached a settlement to avoid the costs and delays associated with litigation. The Court has not decided who is right and who is wrong, but a settlement has been reached.

Martin Brothers has agreed to pay $1,925,000 to pay the claims of Class Members and to cover attorneys’ fees and costs and incentive awards for the Class Representatives, plus will separately pay one half of the actual costs of Notice to the Class and the full costs of administering the Settlement. Class Members may receive up to $3.50 per student per year that they attended an IEC-member school, up to a maximum of $50.00 per student.

North Iowa school affected by the settlement are: Riceville, Belmond-Klemme, Charles City, Clear Lake, Garner, Corwith Wesley, Forest City, Lake Mills, Mason City, Mason City Newman, Greene, Hampton-Dumont, and many others. Go here for more information.

The deadline to file a claim is September 30, 2014, and that can be done here.

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