Compass settles UN contract row
Catering giant Compass settled its £600m (€892m) lawsuit over United Nations contracts today for less than £40m (€59.5m).
Compass was in dispute with Monaco-based Es-Ko and Swiss rival Supreme Foodservice amid allegations of corruption in the awarding of UN contracts to its Eurest Support Services (ESS) unit.
Es-Ko and Supreme filed the lawsuits for £600 million in the United States while an internal probe by Compass found “serious irregularities” in the way UN contracts were awarded.
Compass today said it admitted no legal liability but agreed a deal worth below £40m (€59.5m) including costs associated with the investigation, litigation and the settlement itself.
Chief executive Richard Cousins said: “Whilst any claims would have been resolutely defended, we believe it is in the best interest of the business and shareholders, and good management, to avoid the uncertainties and costs associated with prolonged litigation.
“My focus is on the future and this settlement is a major step in putting the matter behind us.
“Moreover, I am determined to ensure that our reputation for the ethical treatment of clients, suppliers and competitors, over and above any issues of legal liability, is underlined.”
