FedEx Corporation Rotten Score Breakdown

FedEx Corporation agreed in May 2011 to pay the United States $8 million to resolve False Claims Act allegations concerning billing practices under a federal government delivery contract. The case involved FedEx's delivery of packages for federal agencies. The government alleged that FedEx improperly used a contractual exception intended for delays caused by security procedures. According to the Justice Department, the exception allowed FedEx to avoid certain service-failure consequences when government security procedures delayed delivery. The government alleged that FedEx continued to use the security-delay exception code in circumstances where delays resulted from FedEx's own failure to deliver Priority Overnight packages by the required delivery time. The allegations therefore concerned whether the company improperly avoided contractual penalties or other consequences by attributing delivery failures to government security delays. The federal investigation resulted in a civil False Claims Act settlement. FedEx agreed to pay the United States $8 million to resolve the allegations. The settlement resolved the government's civil claims without requiring a trial. This evidence concerns FedEx Corporation itself and is distinct from criminal cases involving independent contractors, trucking companies or other individuals using or working with the FedEx network. Primary source: U.S. Department of Justice Office of the Inspector General — FedEx Corporation to Pay United States $8 Million to Settle False Claims Act Allegations: https://oig.justice.gov/news/press-release/fedex-corporation-pay-united-states-8-million-settle-false-claims-act