US Drops $1.6 Billion Case Against FedEx

FedEx Corp. was “factually innocent” of criminal charges that it knowingly shipped drug packages from illegal online pharmacies and all charges were dropped by federal prosecutors last week.

FedEx has fought the criminal charges since they were filed in 2014, which raised a potential $1.6 billion in penalties if the company was convicted.

The decision was made public in a two-page order from U.S. District Judge Charles Breyer on Friday.

“This case should never have been brought,” the company said in a statement. “The government should take a very hard look at how they made the tremendously poor decision to file these charges. Many companies would not have had the courage or the resources to defend themselves against false charges, the FedEx statement read.

The U.S. Attorney in San Francisco accused the company of delivering packages from online pharmacies even after prosecutors cracked down on the online firms. The government alleged FedEx knew the drugs were illegally prescribed.

The company maintained throughout the investigation and the start of the trial last week that it could not police millions of packages for those that might contain illegal contraband.

Last week, Breyer said in court that FedEx was “factually innocent” and had offered to cooperate with the government during its inquiry, according to The Recorder, a San Francisco legal publication.

Case: U.S. v. FedEx, No. 14-380

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