Monday, 2 April 2001

Suiza Foods Settles West Lynn Creamery Investigation

Back to all newsroom
Monday, 2 April 2001

DALLAS, April 2 /PRNewswire/ — Suiza Foods Corporation (NYSE: SZA), the
nation’s leading dairy processor and distributor, today announced that it has
reached a settlement with the U.S. Attorney for the District of Massachusetts
in connection with the investigation of a rebate program conducted by West
Lynn Creamery (“WLC”) prior to the time Suiza acquired the stock of WLC in
June 1998. The settlement will require the payment by WLC of $7.2 million to
the government. As previously described in Suiza’s September 30, 2000 10-Q,
this investigation related to the payment of rebates by WLC to certain
customers who did not include these rebates as income on their federal income
tax returns. Under the settlement, WLC will plead guilty to one charge of
conspiracy to impede the collection of taxes by the Internal Revenue Service
during the period from 1992-1997.

“All of the rebate payments at issue occurred before Suiza acquired West
Lynn Creamery,” said Michelle Goolsby, Executive Vice President and General
Counsel of Suiza Foods. “As the U.S. Attorney’s office has confirmed, the
rebate payments at issue were discontinued prior to Suiza’s acquisition of
WLC. Neither the investigation nor the conduct at issue was disclosed to us
when we acquired this company. Accordingly, we will seek recourse against
former owners on behalf of our shareholders. We are pleased to have concluded
this investigation and are confident that this matter will not have any future
impact on our business.”

In accordance with generally accepted accounting principles, Suiza has
taken a $7.5 million charge, which includes $300,000 of expenses relating to
the settlement, in the fourth quarter of 2000. As a result of this one time
non-recurring accrual, fourth quarter 2000 net income and diluted earnings per
share after all non-recurring items have been reflected as $28.4 million and
$0.95, respectively in the company’s Form 10-K to be filed today with the SEC.
These results compare to $33.4 million in net income after non-recurring items
and diluted earnings per share after non-recurring items of $1.09, as reported
on February 15, 2001.

In its earnings release on February 15, 2001, Suiza also reported fourth
quarter net income and diluted earnings per share before non-recurring items
of $33.0 million and $1.08 respectively. These results, before non-recurring
items, remain unchanged.

Suiza Foods Corporation, based in Dallas, Texas, is the nation’s leading
fluid dairy processor and distributor, producing a full line of
company-branded and customer-branded products.

The statement in this press release regarding any future impact on our
business is a “forward-looking statement” and it is made pursuant to the safe
harbor provision of the Securities Litigation Reform Act of 1995. This
statement involves risks and uncertainties that may cause results to differ
materially from the statement set forth in this press release. The company’s
ability to generate operating results in accordance with its expectations
depends on a variety of economic, competitive and governmental factors, many
of which are beyond the company’s control and which are described in Suiza’s
filings with the Securities and Exchange Commission, including its Annual
Report on Form 10-K for the quarter and year ended December 31, 2000. The
forward-looking statement in this press release speaks only as of the date of
this release. Suiza expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to such statement to reflect any
change in its expectations with regard thereto or any changes in the events,
conditions or circumstances on which any such statement is based.
SOURCE Suiza Foods Corporation

CONTACT: Cory M. Olson, Vice President and Treasurer of Suiza Foods
Corporation, 214-303-3645; or Larry Rasky of Rasky/Baerlein Group,
617-443-9933, ext. 308, for Suiza Foods Corporation/

All the latest from Dean Foods


Latest news

In May 2020, Dairy Farmers of America (DFA) acquired a substantial portion of Dean Foods' assets. As a family farmer-owned and governed cooperative, no one has a greater interest in preserving and expanding milk markets than DFA.

6 May, 2020
Dean Foods Completes Sale of its Miami, Florida Facility to Mana Saves McArthur, LLC
DALLAS--(BUSINESS WIRE)--Dean Foods today announced that it has completed the previously announced s...
1 May, 2020
Dean Foods Completes Sale of Assets to Dairy Farmers of America
DALLAS--( BUSINESS WIRE )--Dean Foods Company ("Dean Foods" or the "Company") today announced that i...
30 April, 2020
Dean Foods Completes Sales of its Uncle Matt’s Business and the Majority of the Meadow Gold Hawaii...
DALLAS--(BUSINESS WIRE)--Dean Foods ("Dean Foods" or the "Company") today announced that it has comp...
22 April, 2020
Dean Foods Announces Asset Purchase Agreement with MGD Acquisition, LLC for the Sale of the Majority...
MGD Acquisition to Operate Meadow Gold Hawaii as an Ongoing Business to Continue Serving the Hawaiia...
13 April, 2020
Dean Foods Announces Termination of Agreement in Principle with Industrial Realty Group, LLC for the...
Reached Agreement in Principle with an Interested Party for the Sale of Dean Foods’ Hilo Facility ...
4 April, 2020
Dean Foods Receives Court Approval for the Sale of Substantially All of Its Assets
DALLAS--(BUSINESS WIRE)--Dean Foods Company ("Dean Foods" or the "Company") today announced that the...
1 April, 2020
Dean Foods Reaches Agreement in Principle With Industrial Realty Group, LLC for the Sale of Dean Foo...
DALLAS--(BUSINESS WIRE)--Dean Foods Company ("Dean Foods" or the "Company") today announced that it ...
31 March, 2020
Dean Foods Announces Dairy Farmers of America as Winning Bidder for Substantially All of Its Assets
Prairie Farms Dairy, Mana Saves McArthur, LLC, Producers Dairy Foods and Harmoni, Inc. to Purchase A...
17 February, 2020
Dean Foods Enters Into Asset Purchase Agreement with Dairy Farmers of America
Dairy Farmers of America to Serve as Proposed “Stalking Horse Bidder” in a Court-Supervised Sale...
20 December, 2019
Dean Foods Receives Final Court Approval for $850 Million in Debtor-In-Possession Financing
DALLAS --(BUSINESS WIRE)--Dec. 20, 2019-- Dean Foods Company (NYSE: DF) (“Dean Foods” or the “...
14 November, 2019
Dean Foods Company Receives Court Approval of “First Day” Motions to Support Normal Busi...
Obtains Interim Approval to Access DIP Financing Customers Receiving Uninterrupted Supply of Dairy P...
12 November, 2019
Dean Foods Company Initiates Voluntary Reorganization with New Financial Support from Existing Lende...
Company Secures Commitments for $850 Million in DIP Financing to Support Operations In Advanced Disc...
25 October, 2019
Dean Foods Company Announces Date for Third Quarter 2019 Earnings Release and Conference Call
DALLAS , Oct. 25, 2019 /PRNewswire/ --  Dean Foods Company (NYSE: DF) today announced that it will ...
6 September, 2019
Dean Foods Concludes Strategic Alternatives Review; Focuses on Go-Forward Strategy Under New Leaders...
DALLAS , Sept. 6, 2019 /PRNewswire/ --  Dean Foods Company (NYSE: DF) (" Dean Foods " or the "Compa...
6 August, 2019
Dean Foods Announces Second Quarter 2019 Results
DALLAS , Aug. 6, 2019 /PRNewswire/ -- Dean Foods Company (NYSE: DF) today reported second quarter 20...
26 July, 2019
Dean Foods Appoints Eric Beringause as President and CEO
Industry Veteran Brings More Than Three Decades of Experience in Food, Beverage and Consumer Product...
View the newsroom

We’re proud to support national organizations that are nourishing children, promoting animal welfare, and helping in times of disaster.

White papers