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About POGO's Federal Contractor Misconduct Database (FCMD)

The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

FedEx Corporation

U.S. ex rel. Garafolo v. FedEx (Package Delivery False Claims)

Date: 04/29/2011 (Date of Settlement Agreement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Justice

Contracting Party: Multiple Agencies

Court Type: Civil

Amount: $8,000,000

Disposition: Settlement

Synopsis: FedEx paid the federal government $8 million to resolve a False Claims Act lawsuit alleging the company systematically mischarged the government for package deliveries. A FedEx employee whistleblower alleged that, for several years, FedEx falsely used a special “security delay” delivery code to avoid paying refunds for late deliveries. Under the settlement agreement, FedEx did not admit liability, and the government reserved its administrative liability claims, including its suspension and debarment rights.