Target Corp.’s refurbished parking lots may have been paved with dishonesty. In a federal lawsuit filed Friday in Minneapolis, the retail company accused a contractor, LCH Pavement Consultants, of racketeering. Target hired LCH in 2009 to handle $100 million in maintenance on parking lots at its stores across the U.S.
Target alleges that LCH conspired with other paving contractors in California, Illinois, Texas and Wisconsin (which are also defendants in this suit) and that together, they fixed and inflated prices, rigged bids and dispensed kickbacks. The lawsuit also claims that LCH would often overstate the amount of work that needed to be done, and would distribute work regionally to its co-conspirators.
The exact damages amount that Target is claiming remains unknown, but it is seeking triple damages. The company’s statement on the matter was as follows: "Accountability is the foundation of how Target does business, and we expect honesty from our vendor partners. Several paving vendors breached this trust by misrepresenting the services they performed on behalf of Target. ... Target is pursuing civil action to recoup the amount paid for services that were not performed, or performed in-part."
Read more at the Star Tribune.
For other InsideCounsel stories about racketeering, see below: