Ohio company to pay $7.3 million to settle allegations of bailing on "Ride" transit contract
Nov. 2, 2012
A Cincinnati-based transit company will pay the state $7.3 million after allegedly bailing on a contract with the MBTA to operate “The Ride” service, Attorney General Martha Coakley’s office said Friday.
First Transit was accused of backing out on the contract in May 2009, two months before it was due to start its work on “The Ride,” which serves the elderly and disabled.
The Ohio company claimed it had received inaccurate information in the request-for-proposal (RPF), according to Coakley’s office.
In Suffolk Superior Court, Coakley’s office settled with First Transit, which was accused of violating the state’s Consumer Protection Act.
The company was awarded the 5-year contract in March 2009 before it backed out. Its sister company, First Student, has a contract with Boston Public Schools.
“When First Transit backed out of the contract to run ‘The Ride,’ it hurt the T’s ability to serve the customers who rely on its services and left all taxpayers footing the bill,” Coakley said in a statement. “This settlement will bring millions of dollars back to Commonwealth’s taxpayers that deserve the best in public transportation.”