AG secures $2.4M settlement from fraudulent bus company

Itemlive
Beacon Mobility Corporation will pay $2.4 million to settle allegations of illegal price-fixing and contract collusion in Massachusetts.

Summary

Massachusetts Attorney General Andrea Joy Campbell announced a $2.4 million settlement with Beacon Mobility Corporation to resolve allegations of illegal collusion. The company, operating through subsidiaries like Van Pool Transportation LLC and NRT Bus Inc., allegedly conspired with a competitor to divide municipal contracts in Lynn, Saugus, and Dedham. By agreeing not to compete in specific markets, the companies allegedly inflated prices and allowed Beacon to become a sole bidder while falsely certifying that their bids were competitive.

Under the terms of the settlement, the $2.4 million will be distributed among the affected municipalities. Beyond the financial penalty, Beacon must implement an antitrust compliance program for five years, notify the Attorney General's Office of future acquisitions for a decade, and cooperate with future investigations. Local officials, including Lynn Mayor Jared C. Nicholson, praised the settlement for returning funds that should have supported students and taxpayers.

While the antitrust settlement addresses systemic collusion, the article also notes separate operational issues involving NRT Bus, including a communication breakdown that caused a school field trip to be canceled and subsequent billing discrepancies reported by local parents.

(Source:Itemlive)

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