DUBAI May 27 Kuwait's Agility, one of
the largest Gulf logistics companies, said on Friday it had
agreed to pay $95 million in cash to settle a civil lawsuit
accusing it of defrauding the United States military on food
It follows the earlier settlement of the parallel criminal
portion of the case involving more than $8.6 billion of
contracts that the company held from 2003 to 2010 when it was
the primary food supplier to the U.S. army in the Middle East,
including during the war in Iraq.
In addition to the $95 million Agility will pay to settle
the civil case, Agility and the U.S. government have agreed to
mutual releases of all outstanding contract claims related to
the food-supply contracts, it said.
The deal resolves all legal issues related to the contracts
for Agility staff, directors, officers and affiliates, it said,
adding the terms of the settlement were subject to final court
The settlement will allow Agility to once again pursue new
U.S. government contracts, it said.
The criminal proceedings, first filed in November 2009, led
Agility to be replaced as the main Middle East supplier to U.S.
forces and the firm was barred from bidding for any new U.S.
contracts while the court case was pending.
"Today's settlement removes uncertainty for investors and
lenders, ends costly litigation, and opens a pipeline of
potential government and commercial contracting opportunities,"
said Agility chief executive Tarek Sultan.
"The company can meet its obligations under the settlement
without jeopardising its current investments or its future
At one stage, the U.S. military contracts accounted for
around 40 percent of Agility's revenues and also provided it
with a 30 percent margin, analysts estimated at the time.
In the criminal portion of the case Agility said on
Wednesday it had agreed to plead to a misdemeanour in connection
with a single invoice valued at $551, requiring it to pay a
maximum of $551 in restitution, but no criminal fine.
(Reporting By Tom Arnold; Editing by Chris Reese)