Coney Island Food-Service Company Sodexo Paid Out $100 Million In Lawsuits

12/13/2010 10:09 am ET | Updated May 25, 2011

A company selected to run eateries in Coney Island has paid $100 million to settle lawsuits alleging racism against employees and fraud against schools.

Sodexo paid $80 million in 2005 to settle a lawsuit brought by thousands of its black employees in America.

The employees alleged they were regularly denied promotions and segregated within the company.

In July, Sodexo settled a lawsuit brought by Attorney General and Governor-Elect Andrew Cuomo who said the company bilked K-12 school districts statewide and the SUNY college system for food and vending-machine services.

"This company cut sweetheart deals with suppliers and then denied taxpayer-supported schools the benefits," Cuomo said in a press release.

As first reported by the Coney Island blog Amusing The Zillion, Zamperla USA, which owns more than three acres of prime real estate on Coney Island, including Luna Park, selected Sodexo months ago to run a $1.4 million year-round, sit-down restaurant. Sodexo is also expected to run other eateries on Coney Island.

Zamperia faced heat this fall for evicting eight longtime Boardwalk businesses, including Ruby's Bar.