The parties have reached a settlement apparently valued at $222,000 in a class action filed against Big Y Foods, Inc., on behalf of as many as 160,000 persons who alleged that the grocery chain wrongfully collected Connecticut state sales tax on prepared foods from them, in violation of Connecticut consumer protection laws. The persons eligible to take part in the settlement may contact the attorneys for the class or more information.

The action alleged that Big Y collected more than $200,000 in state sales tax on ready-to-eat foods. If not eaten in the store, such food is exempt from sales taxes, according to Daniel Blinn, a lawyer heading the class action lawsuit. The settlement will offer refund certificates to customers who used their store card or have receipts for purchases of prepared foods purchased between February 2002 and January 2003. The certificates will be mailed to store card holders and given to those with receipts. Store cardholders affected by the tax collections will also receive "Big Y Express Reward Coins" that provide reduced-price or free goods as compensation for other purchases they may have made in which taxes were improperly collected.

The certificates will be issued within 90 days after the settlement is approved and must be redeemed within 150 days of the settlement. The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for August 2, 2003.