A lawsuit has been filed against YRC Freight by the United States federal government. According to the Department of Justice, YRC Freight “systematically overcharged” the U.S. Department of Defense for freight, costing the government millions of dollars more than it should have.
The shipments in question were LTL shipments, and therefore the weight of the shipment played a large factor in pricing. When YRC did reweighs to determine the weight of the goods, they allegedly did not report a discrepancy when the goods came in as lighter than expected. According to a DOJ press release, YRC was “knowingly overcharging the government.”
Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division called the practice “an affront to American taxpayers.” She promised that the DOJ will seek to hold YRC accountable for its actions.
But the DOJ is also alleging that after an investigation was launched, the company tried to hide their fraud. Because of that, the DOJ claims that YRC also “made false statements to the government that hid their misconduct.”
The press release also states that during the investigation, authorities also found that YRC lied to the DOD in order to get the agency to use them as a freight carrier in the first place.
YRC responded to the allegations with a press release of their own which states that “these claims are totally without merit.”
“In this case, YRC did not legally fulfill its agreed upon obligations to the Defense Department, choosing instead to line its pockets with tax payer’s dollars,” stated U.S. Attorney James P. Kennedy Jr. for the Western District of New York. “Such actions are fraudulent and illegal. This case should serve as a warning to any organization that enters into a contract with the federal government—if you try to rip us off, be prepared to pay a heavy price.”