California Department of Public Health (CDPH) investigators launched an investigation against the company after NBC Bay Area‘s Investigative Unit discovered raw food being transported from Sysco’s Fremont distribution center last July.
The investigation discovered that the company stored meat, produce, dairy and other fresh food in dirty, unrefrigerated, outdoor storage units for over four years. Sysco is paying $19.4 million in penalties and restitution.
The investigation showed that the company even delivered these items to schools and hospitals. Sysco acknowledged the mistake and confirmed the $19.4 million settlement figure.
“In addition to the settlement with the state, we have comprehensively addressed our food safety and quality assurance practices in California and across the Sysco enterprise,” read the statement.
SYY stock is up close to 0.8% Friday afternoon.