UPS Pays Nearly $5.4 Million Settlement in False Claims Case Regarding Gov't Contracts

United Parcel Service agreed to pay close to $5.4 million to resolve a potential False Claims Act charge that the company allegedly falsely reported information about the transfer of U.S. mail to foreign posts under contracts with the U.S. Postal Service, DOJ announced March 21. According to the settlement agreement, USPS contracted with UPS to pick up mail at six locations in the U.S. and various Department of Defense and State Department locations abroad, then ship it to foreign locations. The U.S. alleges that from 2010 to 2016, UPS knowingly submitted delivery scans or other delivery information that lied about the deliveries, including the time that UPS handed over the mail to foreign postal administrations or other recipients. The U.S. alleged that UPS did that so as to not be docked pay for delivering packages late.

While the settlement is not an admission of guilt, UPS agreed to pay $5,372,000. “Companies doing business with the government must meet their contractual obligations,” said Principal Deputy Assistant Attorney General Brian Boynton. “The Department of Justice will pursue those who knowingly fail to live up to their bargain and falsely bill the government for goods or services that they did not provide.”