FedEx Strikes $8M Deal In FCA Delivery Fraud Suit

Law360, New York (May 3, 2011, 8:26 PM EDT) -- FedEx Corp. reached an $8 million settlement Tuesday in a False Claims Act suit in Washington that accused the company of fraudulently blaming shipping delays on heightened security measures implemented after the terrorist attacks of Sept. 11, 2001.

The company improperly cited the security-related delays in an effort to avoid reimbursing the government for late packages under the company's moneyback guarantee, according to U.S. Attorney Ronald C. Machen Jr.

“Companies that commit to provide services to the United States are expected to meet their commitment and...
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