UPS to pay US$25M for false delivery claims

UPS will pay more than US$25 million to settle charges it submitted false claims to the federal government in connection with delivery of Next Day Air overnight packages, the US Department of Justice said.


Delaware Next Day Air parcel Robert K. Fulk settlement UPS US Department of Justice


UPS will pay more than US$25 million to settle charges it submitted false claims to the federal government in connection with delivery of Next Day Air overnight packages, the US Department of Justice said. The settlement stemmed from a whisteblower lawsuit filed in federal court in Virginia by former UPS employee Robert K. Fulk. The department said that from 2004 to 2014, UPS repeatedly did not meet the standards of its Next Day Air delivery service under contracts with the government. It also said that UPS, in order to block late-delivery claims from government clients, knowingly reported false delivery times, or blamed the delays on other fake issues. The company agreed to pay US$25 million to resolve the civil charges. Of that, US$3.75 million will go to Robert Fulk. UPS said in a statement that it agreed to the settlement “to avoid lengthy and costly litigation, though we continue to disagree with the government’s position.” The company did not acknowledge liability in the settlement.