A private northwestern Indiana college that closed last year is being sued by a food service company which alleges that administrators concealed the school’s dire financial situation.
The Lafayette Journal & Courier reports that Sodexo’s federal lawsuit accuses St. Joseph’s College and its leaders of constructive fraud, fraudulent concealment and breach of contract.
The lawsuit says the company wouldn’t have given the school more than $1.3 million in 2016 to renovate the school’s student center if Sodexo had known of the school’s financial situation. The lawsuit says the school in exchange extended its agreement for Sodexo to operate its food service until 2029.
The company is seeking $1.3 million and additional punitive damages.
St. Joseph’s couldn’t be reached for comment by the newspaper.
The Roman Catholic liberal arts college closed last year under a $27 million debt.