DOJ: FedEx To Pay $8 Million To Settle Fraud Claims On Late Government Deliveries

FedEx Corp. (FDX) will pay the federal government $8 million to settle civil false-claims allegations that it wrongly blamed security delays for the late delivery of packages to U.S. government agencies, the Justice Department announced Tuesday.

The case relates to increased security measures at government buildings in the wake of the Sept. 11, 2001, terrorist attacks.

A FedEx employee alleged that even after the new security measures became routine, FedEx couriers falsely blamed the late delivery of government packages on security delays.

By asserting security-related delays, the company avoided reimbursing government employees for the untimely deliveries, the lawsuit alleged.

The case was brought under the federal False Claims Act, which allows private citizens to obtain financial awards when they file lawsuits exposing fraud against the government.

-By Brent Kendall, Dow Jones Newswires; 202-862-9222; brent.kendall@dowjones.com

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