United States accuses YRC Freight of overcharging for shipments
The United States filed a complaint against YRC Freight, Roadway Express and Yellow Transportation, accusing the companies of systematically overcharging the government millions of dollars for freight carrier services.
According to the U.S. Department of Justice, the lawsuit was filed in U.S. District Court on Dec. 12 in Buffalo, N.Y. The United States alleges that for more than eight years the defendants defrauded the Department of Defense “by millions of dollars for shipments that were actually lighter, and thus cheaper, than the weights for which the defendants charged the government.”
“Knowingly overcharging the government is an affront to American taxpayers, and the Department of Justice will seek to ensure that those who engage in such misconduct are held accountable,” Jody Hunt, assistant attorney general of the Department of Justice’s civil division, said in a news release.
Roadway Express and Yellow Transportation merged to become YRC in 2009. In 2012, the name of the company was changed to YRC Freight, which is headquartered in Overland Park, Kan.
In a statement posted on its website, YRC Freight said the claims were totally without merit and that the Department of Defense currently represents less than
1 percent of YRC Freight’s annual revenue. LL