UPS to Pay $4.2 Million to Settle False Claims Charge

United Parcel Service will pay $4.2 million to fourteen states, the District of Columbia, New York City and Chicago to resolve allegations that it routinely falsified delivery records regarding state and city government packages for years.

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Earlier this year, UPS settled similar allegations with the federal government for $25 million and the state of New Jersey for $740,000.

The case was brought by former UPS employee Robert Fulk under the federal false claims act and the false claims acts of nineteen states, the District of Columbia, N.Y.C. and Chicago.

This second settlement follows months of negotiations between a coalition of the states and cities led by New York Assistant Attorney General Adam Pollock, Fulk’s law firm —  Wu, Grohovsky & Whipple, — and UPS.

“This settlement is a result of the successful public/private partnership anticipated by the federal and state false claims acts in identifying and stopping fraud,” said Julie Grohovsky, a partner at Wu, Grohovsky & Whipple. “Because of the efforts of our client, Mr. Fulk, millions of dollars in wrongfully obtained taxpayer money  will be returned to the federal, state and local government.”

The lawsuit alleged that UPS fraudulently obtained payment for delivery services not actually performed through a variety of actions, including entering false delivery times into its tracking system to make it appear that packages were delivered on time to government customers, when they were not.

UPS also misrepresented to its government customers that fake or erroneous reasons caused delays in service, including false reports that government customers had requested later deliveries when they had not.

These fraudulent actions allowed UPS to avoid paying millions of dollars in service refunds for late deliveries to federal and state governments.

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