BOSTON — The Massachusetts attorney general’s office says a transportation company that allegedly backed out of a contract to run The Ride service for disabled customers will pay a $7.3 million settlement.
The attorney general’s office said Friday that the deal with Cincinnati, Ohio-based First Transit Inc. will settle breach of contract allegations by the MBTA.
Authorities said in 2009, First Transit was awarded a five-year deal to run The Ride after submitting a $97 million bid. But officials said First Transit backed out after learning its bid was much lower than competing bidders.
First Transit said it received inaccurate information when the state solicited the bids, a charge the state denied.
In a statement, First Transit said it never had a contract with the MBTA. The company said it settled to avoid the costs and uncertainty of litigation.