Settlement resolves dispute over Detroit school bills

DETROIT (AP) — A $28 million settlement has resolved a dispute between Detroit’s schools and a company over unpaid bills.

The Detroit Free Press reports U.S. District Court Judge Mark Goldsmith signed off on the dismissal of a lawsuit last Thursday after the school district earlier approved the settlement with Sodexo Management, which provided custodial and maintenance services.

Sodexo has been trying to collect an arbitrator’s award over unpaid bills through 2014, when its contract with the district was terminated. The settlement would pay the company over two years, with the first payment of $16 million coming this month.

The money will be paid by Detroit Public Schools, an entity that collects taxes and pay off debt. The Detroit Public Schools Community District handles student education.

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