YRC Worldwide | Photo courtesy of Wikimedia Commons

YRC Freight overcharged federal government, lawsuit claims



The Justice Department said Friday that Overland Park, Kansas-based YRC Freight “systematically overcharged” the federal government for freight carrier services and “made false statements,” according to a Justice Department statement.

The lawsuit alleges that YRC “defrauded the Department of Defense by millions of dollars for shipments” spanning more than seven years. The government also claims YRC concealed its overcharging practices.

“Those who do business with the government must do so fairly and honestly,” said Jody Hunt, assistant attorney general of the Department of Justice’s Civil Division.

YRC Freight, which is a subsidiary of YRC Worldwide, disputed the claims in a statement Friday and said that Department of Defense contracts comprise less than 1 percent of YRC Freight’s annual revenue.

“These claims are totally without merit,” YRC Worldwide General Counsel Jim Fry said. “We have made every effort over nearly a decade to address the government’s questions.”

Shares of YRC Worldwide plunged Friday after the government charges, falling $1.26, or 28.4 percent, to close at $3.17, the Kansas City Star reports.

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