NASHVILLE — Yellow Corporation announced this week that it has reached a $6.8 million settlement with the U.S. government to end a lawsuit alleging that the company overcharged Uncle Sam for certain freight shipments for the U.S. Department of Defense (DOD) between 2005 and 2013.
In reaching that agreement, Yellow admitted no liability while denying the government’s core allegations. Yellow continued delivering for the government during the lawsuit period, adding that its volume of DOD-related freight is larger now than when the lawsuit was filed.
The U.S. Department of Justice filed its claim against Yellow on on Dec. 12, 2018, alleging that the company, which was then doing business under its prior name, YRC Freight Inc., overcharged DOD from a period between September 2005 and October 2013 for thousands of shipments that were lighter and cheaper than the weights that the carrier charged the Pentagon.
“We remain confident that we complied with the then-existing rules and our contractual obligations,” said Leah Dawson, Yellow’s executive vice president and general counsel.
“While we believe we had strong defenses, we decided, in the best interests of all parties, to resolve this matter for a small fraction of the amount originally demanded.”
Darren Hawkins, CEO of Yellow, said the company is “pleased to have come to a resolution.”
“Now we can continue to focus on the important work ahead,” he added. “With our nation’s current supply chain constraints and the critical role Yellow plays in delivering freight, there’s no time for distraction. Putting this matter behind us also helps Yellow move forward with its corporate mission of transforming our nearly 100-year-old company into one of the nation’s preeminent super-regional and long-haul less-than-truckload carriers.”
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