Krispy Kreme Settles Virginia Sewer Suit

Krispy Kreme was accused of damaging more than just waistlines

By Andy Salsman
|  Tuesday, Dec 8, 2009  |  Updated 1:17 PM EDT
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Krispy Kreme Settles Virginia Sewer Suit

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You’ve probably heard that Krispy Kreme doughnuts can clog your arteries. But could they also clog your sewers? Fairfax County thinks so, but we may never get the answer.

The county sued the mogul of munchies for $1.95 million in repairs and $18 million in civil penalties, accusing Krispy Kreme of destroying sewer pipes, pumps and other sewer system parts with acidic grease from its Lorton factory, the Washington Post reported.

The two parties settled the lawsuit out of court, with the company agreeing to pay $750,000, and Krispy Kreme never admitted any wrongdoing, blaming the "faulty design and construction" of the sewage system.

In court documents, Fairfax said the company would rank high in the federal Clean Air Act's "hall of shame." Krispy Kreme said the county was "shameful" and accused its attorneys of raising "every conceivable legal issue -- regardless of merit -- to avoid reaching the actual facts."

The settlement included an additional $200,000 from an insurance company, county officials said.

The $900,000 in legal fees reported in Krispy Kreme's third quarter report covered its own legal expenses, not the expenses of the county, the company said.
 

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