Tags: FedEx | whistleblower | suit | million

FedEx to Pay $8 Million in Whistleblower Suit

Thursday, 05 May 2011 04:14 PM

FedEx has agreed to deliver $8 million to the federal government to settle a lawsuit alleging that the company repeatedly blamed late deliveries on security measures in government buildings. The suit claimed that the deliveries were delayed because of traffic or parking problems, and the company used security as a way to avoid penalties for missing deadline, The Washington Post reported.

FedEx, whistleblower, suit, millionThe lawsuit alleged that the company began using the ploy in the wake of the 9/11 attacks and continued it through this year. FedEx denied the allegations but agreed to settle to avoid “continued litigation and its associated risks,” the Post reported.

Whistleblower Mary Garofolo originated the suit under the False Claims Act. Garofolo, who worked for FedEx in Maryland and will receive $1.44 million from the settlement, retired in 2007.


“I would give them 2001 as being a year when security was an issue for deliveries,” Garofolo told the Post. “But it went on for years and got to the point it was really off the chain using that as their explanation when customers would call and complain.”


© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Arizona's Sheriff Joe Picks Patriots; Inmates to Get Popcorn

Saturday, 31 Jan 2015 23:21 PM

The Arizona lawman who bills himself as America's toughest sheriff predicts the New England Patriots will win the Supe . . .

Los Angeles, America's Homeless Capital, Counts Its Down-and-Outs

Saturday, 31 Jan 2015 21:46 PM

Notebook in hand, Ana Alvarez walked along the streets of Skid Row, the downtown Los Angeles district that's sometimes c . . .

Police Probing Alleged Corruption in Nevada Legislature

Saturday, 31 Jan 2015 19:59 PM

Las Vegas police have confirmed they are investigating allegations of corruption in the Nevada Legislature involving an  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved