FedEx Pays $8 Million To Government For Misuse of September 11 Security Codes For Extra Profit

Federal Express will pay $8 million to settle a whistleblower lawsuit which revealed that FedeX continued to use “security delay” codes, established just after the September 11, 2001 World Trade Center attacks, after those security measures at government buildings were relaxed. This resulted in the government and U.S. taxpayers paying for priority overnight service that was not actually provided. Because of the use of security codes, FedEx was able to shield late deliveries to avoid reimbursing the government for untimely deliveries. The whistleblower, Mary Garofalo will receive $1.4 million for exposing FedEx’s false billing practices.