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7/18/2014 2:05:00 PM Write a Letter to the Editor Write a letter to the Editor

FedEx Indicted in Drug-Shipment Case


Victor J. Blue/Bloomberg News

The Justice Department has indicted FedEx Corp. for delivering prescription drugs and other controlled substances to illegal Internet pharmacies. FedEx denied any wrongdoing and said it would plead not guilty.

FedEx allegedly delivered drugs to Internet pharmacies that supplied pills to customers who filled out online questionnaires and were never examined by doctors, knowing such practices violated federal and state drug laws, the government alleged.

FedEx said it is “innocent of the charges brought,” Patrick Fitzgerald, the company’s senior vice president of marketing and communications, said in a statement.

“We have repeatedly requested that the government provide us a list of online pharmacies engaging in illegal activity. Whenever [the Drug Enforcement Administration] provides us a list of pharmacies engaging in illegal activity, we will turn off shipping for those companies immediately. So far, the government has declined to provide such a list,” the statement said.

In a July 17 filing with the Securities and Exchange Commission, the company said it could face “fines, penalties, forfeiture and compliance conditions” if convicted.

“Given the early stage of this proceeding, we cannot estimate the amount or range of loss, if any; however, it is reasonably possible that it could be material if we are convicted,” the filing said.

FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.

By Transport Topics
Bloomberg News contributed to this story.

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