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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

ATA Airlines v. FedEx (Breach of Contract)

Date: 06/11/2008 (Date of Filing)

Misconduct Type: Poor Contract Performance

Enforcement Agency: Non-Governmental

Contracting Party: Non-Governmental

Court Type: Civil

Amount: $65,998,411

Disposition: Judgment Against Defendant

Synopsis: ATA Airlines Inc. filed a lawsuit against FedEx Corp. alleging breach of contract and breach of fiduciary duty by FedEx. ATA claimed that FedEx, which leads a team of airlines flying military charter flights, ousted ATA from the team in violation of a contract and forced ATA into bankruptcy. FedEx filed a counterclaim against ATA, claiming ATA breached the contract by ceasing operations. In October 2010, a jury returned a $66 million verdict in favor of ATA ($22 million in lost profits for fiscal year 2008, and $44 million in lost profits for fiscal year 2009).