(Mark Solomon – FreightWaves)
For more than 7 years, less-than-truckload carrier YRC Freight and two related carriers inflated the weight of shipments tendered by the Pentagon, billed the shipper using improper rates, and falsified statements in a bid to conceal their actions, the Justice Department said today in bringing suit against the companies.
DOJ alleged the three carriers, YRC Freight, Yellow Transportation, and Roadway Express, billed the Pentagon based on shipment weights that were higher than the actual weight of the goods that moved. The practice was systemic, and the three carriers “knowingly made or used false statements” to hide their practices, according to the suit. The amount of the alleged overcharges were in the “millions of dollars,” said the agency, without disclosing specifics.
Yellow was the name that was used for decades before it was re-branded into YRC. Roadway was an LTL carrier acquired in 2003 by then-Yellow. Click here to read more.
- YRC Freight Statement on U.S. Government Litigation
- U.S. Sues Freight Carrier YRC Over Military Shipments (Wall Street Journal)
- U.S. Sues YRC Worldwide Freight Units, Alleges Overcharging (Reuters)