Compass, the world’s largest catering company, has agreed to pay $18m (£11m) to US Authorities for allegedly overcharging New York schools for meals. Chartwell, a US subsidiary of the UK company, stands accused of failing to pass on savings secured from its own suppliers to 39 schools in a period from 2003 to 2010.

The settlement is a further blow to the company that has previously faced allegations of corruption linked to UN contracts, and heavy criticism of the fare it serves to children in the UK, spearheaded by TV chef and political activist Jamie Oliver.