FedEx to face potential $1.6bn charge over illegal drug shipping

It has been reported that US parcel giant FedEx are due to face charges from the government for its role as transportation in the sale of illegal prescription drugs throughout the United States of America. It was indicted by a federal grand jury that the company, including its subsidiaries FedEx Express and FedEx Corporate Services, was supposedly providing the shipping solution as Internet pharmacies sold and distributed prescription drugs that were in violation of controlled substances laws. The claims, which follow a nine year investigation, report that the prescription drugs were sold from 1998 without being accompanied by prescriptions or without doctor’s authorisation.

FedEx could face fines of up to $1.6bn, the US Attorney’s Office of the Northern District of California has said; however the company denies the allegations. Federal prosecutors claim that the parcel delivery company “knew that it was delivering drugs to dealers and addicts”, with FedEx also supposedly arranging special collection for “problematic” shippers.

The company under scrutiny has released a statement in response to the allegations, advising they will plead not guilty and defend the “attack on the integrity and good name of FedEx and its employees.” The statement released, from Senior Vice President of Marketing and Communications, Patrick Fitzgerald, also states how as a company they have repeatedly requested a list of all online pharmacies engaging in illegal activity, however the government has yet to provide this.

Fitzgerald also stated: “FedEx transports more than 10 million packages a day. The privacy of our customers is essential to the core of our business. This privacy is now at risk, based on the charges by the Department of Justice related to the transportation of prescription medications.”