UPS agrees to pay $25 million to settle lawsuit claiming it gave false bills to government

Associated Press

United Parcel Service is agreeing to pay $25 million to settle complaints that it submitted false claims to the federal government on overnight package deliveries.

The Department of Justice said Tuesday that the payment settles a whistleblower lawsuit filed by a former UPS employee, who will get $3.75 million.

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UPS did not immediately provide a comment on the settlement.

UPS guaranteed delivery of overnight packages by a certain time. The whistleblower lawsuit charges that from 2004 to 2014, UPS recorded incorrect delivery times to make it seem as if the packages arrived on schedule and gave false reasons for being late.