FedEx to Pay $8 Million in Whistleblower Suit

Thursday, 05 May 2011 04:14 PM

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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.”


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