FedEx Settles Whistle-Blower Lawsuit For $8 Million

Employee in Crofton exposed shipping company's scheme that blamed delivery delays on 9/11 security concerns

FedEx will pay $8 million to settle a lawsuit filed by a former Crofton shipping center employee accusing the company of defrauding the federal government.

Mary Garofolo, who worked for FedEx for 23 years before retiring in May 2007, filed suit against the company under the federal whistle-blower statute after complaints to her supervisors about the scheme were ignored, she said. Her suit was filed under seal to enable government investigators to look into her allegations, which centered on a fraudulent billing scheme involving thousands of late deliveries that FedEx falsely blamed on 9/11-related security delays.

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