UPS Pays More Than $5 Million To Settle False Claims Act Allegations
On March 21st, 2022, the Department of Justice (DOJ) announced that the United Parcel Service Inc. (UPS) has agreed to a $5.3 million False Claims Act settlement. UPS was accused of falsely reporting its delivery times in relation to a federal contract. Here, our Florida government program fraud attorneys provide a more detailed explanation of allegations raised against UPS.
False Claims Act Settlement: False Reports on International Deliveries
The United States Postal Service (USPS) entered into a commercial contract with UPS to facilitate the delivery of international mail at several facilities run by the Department of Defense and State Department. The total payment received by UPS was dependent, in part, on delivery times.
In effect, the contract imposes small bonuses for timely deliveries and small financial penalties for late deliveries. For this reason, the reporting of delivery times by UPS had direct financial implications. The faster deliveries were completed, the more money received by the company.
As noted in the settlement announced by the DOJ, UPS has consented to findings that it improperly misreported the delivery times of certain international packages. The carrier will pay approximately $5.3 million to the federal government to resolve its liability under the False Claims Act.
Suspect Fraud of a Government Program? Know Your Rights Under the False Claims Act
Federal agencies work with a wide range of private companies in order to carry out their objectives. Unfortunately, government program fraud remains a very serious problem. The False Claims Act is one of the most powerful tools that the government has to protect taxpayer dollars from misconduct by private contractors. Notably, individuals have important legal rights under the law. If you suspect that a contractor is defrauding a federal program, you can take action. Here are three key things to understand about the False Claims Act:
- Private Right of Action: You can file a qui tam lawsuit under the False Claims Act. The law allows individual whistleblowers to step into the role of the government and file a lawsuit to stop fraud against a federal program. Many states, including Florida, have their own state-level False Claims Act.
- Financial Award for Successful Claim: Why file a qui tam lawsuit? Other than doing a good deed to stop fraud, you may also be eligible for a financial award. If the government recovers money because of your claim, you are entitled to a share of the proceeds.
- Protection Against Retaliation: Employers cannot take adverse action against employees who blow the whistle under the False Claims Act. If you are fired because you filed a False Claim Act lawsuit (or expressed your intentions to do so), your rights have been violated.
Schedule a Free, Confidential Consultation With a False Claim Act Attorney
At Guttman, Freidin & Celler, our whistleblower protection have the professional skills, legal knowledge, and experience to represent clients in False Claim Act cases. If you have questions about the legal process, we are ready to help. Call us now or contact us directly online to arrange a fully private consultation. Our firm provides national representation in False Claims Act actions.