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Sriracha maker may owe $400K in unpaid fees: Report

Sriracha Hot Chili Sauce is bottled at the Huy Fong Foods plant in Irwindale, California.
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Sriracha Hot Chili Sauce is bottled at the Huy Fong Foods plant in Irwindale, California.

The city of Irwindale, California, is suing Huy Fong Foods, again.

The San Gabriel Valley Tribune reported that the city claims in the lawsuit filed last week that the sriracha maker owes $427,086.76 in unpaid fees, which Huy Fong had agreed to pay in lieu of taxes.

"Because we had this odor issue where all five of the City Council members unanimously declared us a public nuisance, without real basis, I feel that Huy Fong Foods is being treated unfairly, so I stop the contributions," founder and CEO David Tran said in a statement to CNBC.

Last year, the city responded to a letter from Huy Fong clarifying that the payments were not contributions, but mandatory fees owed as part of the company's operating agreement with the city.

Fred Galante, attorney for the city of Irwindale, told CNBC in a statement that the city had made several attempts to settle the matter.

Read the full report in the San Gabriel Valley Tribune.