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Portion Of Wis. Lawsuit Reinstated Against Quiznos

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Apr 20, 2008 8:07 pm US/Mountain

Portion Of Wis. Lawsuit Reinstated Against Quiznos

DENVER (AP) ― A Wisconsin federal judge has reinstated two claims in a lawsuit accusing Denver-based Quiznos of racketeering and fraud -- saying he made a mistake when he dismissed them as a matter of law.

U.S. District Judge William Griesbach said in a ruling handed down Wednesday that arguments and evidence from franchisees and the company should be weighed before he issues a decision, or the case is settled at trial.

Twelve franchise operators have alleged they were forced to buy supplies at higher prices from Quiznos or its approved vendors, with the profits funneled back to the corporation as kickbacks.

They also contended the company set retail prices too low to enable them to make a profit.

Quiznos denies the allegations.

Two lawsuits are still pending in federal court in Colorado.

Quiznos settled a similar lawsuit, one was dismissed voluntarily in Michigan, and a third was dismissed in Illinois.

The privately held company has about 5,200 restaurants.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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