The federal government has filed a lawsuit alleging it was overcharged for shipping in a case first brought by a whistleblower.
The complaint in federal court in Buffalo accuses YRC Freight, Roadway Express and Yellow Transportation of knowingly overcharging the Defense Department by submitting bills based on higher estimated, rather than actual, shipment weights.
Continue Reading Below
Prosecutors say the case arose from a whistleblower lawsuit. The whistleblower statute lets private citizens bring legal action on the government's behalf and share in any recovery.
YRC Freight, based in Overland Park, Kansas, issued a statement Friday saying the claims are without merit. Attorney Jim Fry says the company has been addressing the government's questions for nine years and is confident it acted within contract guidelines.
Yellow Transportation and Roadway have been YRC Freight since 2008.