FedEx will pay the federal government $8 million to settle a whisteblower’s lawsuit that claimed the company’s couriers blamed heightened security measures for late deliveries to avoid paying penalties for missing shipping deadlines. The agreement was unsealed on May 3rd in U.S. District Court for the District of Columbia. The lawsuit alleged the practice began in the wake of the 2001 terrorist attacks, but continued through this year after beefed-up security had subsided or become routine and not an unpredictable hurdle.
The government said that couriers handling shipments for federal offices invoked security delays to mask late arrivals after they had become stuck in traffic, couldn’t find parking or were tardy on relays of packages. It was alleged that FedEx workers cited a security delay exception rather than honor money-back guarantees in contracts with federal customers when deliveries were late. FedEx denied all charges, but still it settled the case. The suit was originally brought under the federal False Claims Act by whistleblower Mary Garofolo, who worked for FedEx at its station in Crofton. Garofolo will receive $1.44 million as her share of the money the government is due to recover. Ms. Garofolo retired from FedEx in 2007.
Source: Washington Post
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