A U.S. federal court case will determine how much responsibility shippers like FedEx and UPS hold for delivering illegal contents and substances later this week.
FedEx was indicted in early July for conspiracy to distribute controlled substances. FedEx allegedly played a role in transporting illegally sold painkillers and other prescription drugs. FedEx is scheduled to be arraigned in the proceeding Tuesday, July 29 in San Francisco.
The DEA and federal prosecutors investigated UPS for similar malfeasance for its unlawful delivery of prescription-drugs. UPS settled in March 2013, agreeing to pay $40 million and admitting fault in their conduct. UPS also had to launch an online-pharmacy compliance program, according to The Wall Street Journal.
Prosecutors allege that FedEx frequently ignored warnings from the U.S. government that shipping drugs from online pharmacies that dispensed materials to those who filled out an online questionnaire was illegal misconduct.
They also allege that FedEx created incentives for shipping prescription drugs in this manner.
FedEx plans to plead not guilty.
“We will defend against this attack on the integrity and good name of FedEx and its employees,” the company said earlier this month.
The indictment further alleges that FedEx delivered pharmaceuticals to vacant homes and parking lots. All told, FedEx faces a count of 15 charges, including “conspiracy to distribute controlled substances and conspiracy to distribute misbranded drugs, as well as distribution of controlled substances and misbranding drugs,” according to The Wall Street Journal.
FedEx could be charged as much as $1.6 billion in fines, in addition to restitution and forfeiture of profits.
“This indictment highlights the importance of holding corporations that knowingly enable illegal activity responsible for their role in aiding criminal behavior,” U.S. Attorney Melinda Haag said.
For the parcel-delivery industry, legal responsibility comes down to whether the prosecutor can prove that the delivery company knew it was shipping illegal material, said drug-enforcement attorney Larry Cote, according to The Wall Street Journal.
Photo Credit: flickr/Michael Sauers
