Freight companies agree to pay substantial settlement in bid-rigging conspiracy case

August 12, 2008  |  Press Releases

In yet another instance of corporate America swindling the U.S. government in its military contracts, seven freight companies have agreed to settle bid rigging claims against them. The companies, under contract with the Defense Department, move household goods belonging to U.S. military and civilian families. The government filed suit under the False Claims Act case alleging that moving companies in Europe agreed among themselves to raise and to fix the rates charged by the companies for packing and unpacking services performed for U.S. military families stationed in Germany and other countries in Europe. In turn, freight companies working in the U.S. then conspired to submit their bids to the Defense Department at agreed-upon rates that were spiked in accordance with the scheme devised by the European freight companies. As a result of the freight companies’ illegal and conspiratorial actions, the U.S. Government overpaid on its transportation contracts for at least two years.

The United States became aware of the conspiracy after two suits were filed

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