Trucking company employee to get $1.3 million in whistleblower settlement
An employee whistleblower at a big U.S. trucking company will receive $1.3 million, plus interest, as his share of a settlement of false claims allegations against freight carriers.
The U.S. Justice Department said March 14, 2022, that YRC Freight Inc. (YRC), Roadway Express Inc. and Yellow Transportation Inc. have agreed to pay approximately $6.85 million to resolve allegations under the False Claims Act that they knowingly presented false claims to the U.S. Department of Defense by systematically overcharging for freight carrier services and making false statements to hide their misconduct.
The companies, which are transporters of industrial, commercial and retail goods, contracted with Department of Defense to ship military freight across the country from September 2005 to October 2013. The United States alleged that the YRC defendants fraudulently billed the United States for delivery charges based on higher weights when, after reweighing the shipments, they knew that the actual weights were lower.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by James Hannum, an employee of Yellow Transportation. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.
“Today's announcement demonstrates our commitment to work with the Department of Justice and our law enforcement partners to hold companies accountable for artificially inflating the cost of services provided” to the Defense Department, noted Special Agent in Charge Patrick J. Hegarty of the DoD Office of Inspector General's Defense Criminal Investigative Service.
The trucking company employee’s actions exposing the alleged false claims shows why potential whistleblowers should contact Ethic Alliance, said Scott Williams, its CEO.
“Ethic Alliance was created to help whistleblowers make reports, receive legal protection against retaliation, and ultimately be rewarded under US laws like the False Claims Act. Our goal is to make it much easier for whistleblowers to navigate the process, find the right attorneys to bring these suits in conjunction with the government, and receive financial rewards for doing the right thing ,” said Williams.
Ethic Alliance is a for-profit corporation and law firm whose purpose is to empower, educate and protect whistleblowers, ensuring they receive the protection they need and the rewards they are entitled to under US law (the US government will typically reward whistleblowers 10%-30% of the amount recovered or sanctioned under various whistleblower laws), generating profits for investors while reducing corruption, fraud, theft, lying and cheating in our society.
Ethic Alliance protects whistleblowers through a secure, encrypted reporting and messaging platform, attaching the strong legal protection of attorney-client privilege from the moment a report is filed, and access to a network of specialty attorneys that have made careers protecting and supporting whistleblowers, and working with the US government to win whistleblower lawsuits.
Contact Ethic Alliance at info@ethicalliance.com
Related link: https://www.justice.gov/opa/pr/freight-carriers-agree-pay-685-million-resolve-allegations-knowingly-presenting-false-claims
