United Parcel Service Co. will pay more than $25 million to settle claims it falsified records to collect more for overnight packages to government customers.
UPS provides delivery services to scores of federal agencies through contracts with the General Services Administration and the U.S. Transportation Command — an agency that supports the U.S. Defense Department.
According to the government, the Atlanta-based package delivery company guaranteed next-day delivery of packages by specific times under those contracts.
The settlement announced Tuesday by the U.S. Department of Justice stems from a whistleblower lawsuit in Federal Court in Virginia. In that lawsuit, Robert Fulk, a former UPS driver and manager, claimed that between 2004 and 2014, UPS recorded incorrect delivery times to make it appear its deliveries had arrived on schedule.