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FLAV-O-RICH TO PAY N.C. $2 MILLION FOR RIGGING PUBLIC SCHOOL MILK BIDS

FLAV-O-RICH TO PAY N.C. $2 MILLION FOR RIGGING PUBLIC SCHOOL MILK BIDS
 RALEIGH, N.C., Sept. 9 /PRNewswire/ -- Attorney General Lacy H. Thornburg announced today the settlement of the State's bid-rigging claims against Flav-O-Rich, Inc.
 The State had contended that Flav-O-Rich, a Kentucky corporation, participated in a conspiracy to rig bids for contracts to supply dairy products to public schools throughout North Carolina from the 1982-83 through 1987-88 school years in violation of both state and federal antitrust laws.
 In the civil settlement agreement entered into today, Flav-O-Rich, without admitting guilt, agrees to pay the state $2,000,000 as compensatory damages. Of this amount, $1,250,000 will be in cash and $750,000 will be provided in milk to be delivered to public school systems at no charge.
 The settlement does not provide for immunity from criminal prosecution to present or former employees, officers or directors of Flav-O-Rich, Inc.
 $312,500 in cash was paid at the time of the closing of the settlement agreement. The remainder of the cash settlement will be paid to the state over five years. The free milk deliveries will be made over a period of six years to school districts designated by the state.
 Flav-O-Rich, Inc.'s monetary obligations under the settlement agreement are guaranteed by its parent company, Dairymen, Inc., which is a Kentucky agricultural cooperative corporation.
 As part of the settlement agreement, Flav-O-Rich, Inc. has agreed to conduct an antitrust compliance program and to keep the attorney general notified of the content and execution of that program. Flav-O-Rich has further agreed to cooperate with the state in its ongoing investigation of bid-rigging in the dairy industry.
 The Attorney General's Office is continuing its investigation against other dairy companies.
 -0- 9/9/92
 /CONTACT: William Tucker, N.C. Department of Justice, 919-733-7741/ CO: Flav-O-Rich, Inc.; N.C. Department of Justice ST: North Carolina IN: SU:


JZ -- CH012 -- 7536 09/09/92 13:06 EDT
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Date:Sep 9, 1992
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