FedEx faces U.S. criminal charges over online pharmacies

SAN FRANCISCO Fri Jul 18, 2014 5:22am IST

An all-electric Federal Express delivery truck is seen in San Diego, California September 24, 2013. REUTERS/Mike Blake/Files

An all-electric Federal Express delivery truck is seen in San Diego, California September 24, 2013.

Credit: Reuters/Mike Blake/Files

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - FedEx Corp was indicted on Thursday for shipping packages from illegal online pharmacies despite repeated warnings from U.S. drug enforcement officials, according to a court filing.

The 15-count indictment, handed down by a federal grand jury in San Francisco, includes charges for conspiracy to distribute controlled substances.

In a statement, FedEx Senior Vice President Patrick Fitzgerald said the company is innocent and will plead not guilty.

"FedEx transports more than 10 million packages a day," Fitzgerald said. "The privacy of our customers is essential to the core of our business. This privacy is now at risk."

Beginning in 2004, FedEx was warned "on no less than six different occasions" that illegal Internet pharmacies were using its services to distribute prescription drugs, the indictment said. Those warnings extended to senior management at the company, the filing said.

In one instance, FedEx knew the Drug Enforcement Administration shut down one pharmacy, but continued to ship packages from its affiliates.

FedEx's Fitzgerald said U.S. prosecutors are asking that the company assume responsibility for the legality of millions of packages a day.

"We are a transportation company. We are not law enforcement," he said.

The case in U.S. District Court, Northern District of California is United States of America vs. FedEx Corporation, FedEx Express Inc and FedEx Corporate Services Inc, 14-cr-380.

(Reporting by Dan Levine; Editing by Chris Reese)

FILED UNDER:
  • Most Popular
  • Most Shared

Pending Reform

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage