FedEx agrees to pay $8M to US over late deliveries

AP News
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Posted: May 03, 2011 8:05 PM
FedEx agrees to pay $8M to US over late deliveries

The Justice Department says FedEx Corp. will pay $8 million to settle allegations that company couriers falsely blamed increased security following the Sept. 11 terrorist attacks for delivery delays on packages to the government.

The department says the couriers' misuse of "delivery exception codes" blocked the government from seeking its money back on late-delivered packages. The Justice Department says the couriers used the codes even after tighter security was scaled back or became routine procedure for entering government buildings. A FedEx employee exposed what the couriers were doing in a lawsuit filed five years ago.

A FedEx spokesman, Maury Lane, denies there were security code delays and adds that the government never identified any. He says the company settled to avoid a costly, protracted legal battle.