Judge Says DOD Freight False Claims Suit Should Proceed

Law360 (July 20, 2020, 10:09 PM EDT) -- A New York federal magistrate judge recommended that most of the U.S. Department of Defense's allegations in a False Claims Act suit accusing a freight carrier of systematically overcharging the department move forward, while refusing to transfer the case.

The government had adequately alleged that YRC Freight Inc. overcharged the DOD on thousands of "reweighed" shipments and YRC hadn't shown it made more sense to hear the case in Kansas, where it is headquartered, rather than in New York, U.S. Magistrate Judge Michael J. Roemer said in a July 17 recommendation and order.

"It is alleged that defendants eliminated negative reweigh...

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