Kuwaiti logistics firm Agility settles U.S. civil case
Reuters
Published May 26, 2017 05:40PM ET
Updated May 26, 2017 05:50PM ET
Kuwaiti logistics firm Agility settles U.S. civil case
WASHINGTON (Reuters) - Agility Public Warehousing Co KSC (KW:AGLT), a major Kuwaiti logistics company, has agreed to pay $95 million to settle a civil case involving allegations it overcharged for supplying food to the U.S. military from 2003 to 2010, the U.S. Justice Department said on Friday.
The deal, which follows settlement of a related criminal case on Wednesday, means the company will again be able to bid for U.S. government work after a seven-year ban.
Agility also agreed to forgo administrative claims seeking $249 million in additional payments after pleading guilty to a criminal misdemeanor offense for theft of government funds, the Justice Department said in a statement.
The Defense Department's Defense Logistics Agency also will release a claim of $27.9 million against Agility and lift its suspension as a contractor, the statement said.
Agility was the largest supplier to the U.S. Army in the Middle East during the war in Iraq but has been banned from contracting after it was accused of defrauding the military on multibillion-dollar supply contracts.
At one stage, the contracts accounted for around 40 percent of Agility's revenues and also provided it with a 30 percent margin, analysts estimated at the time.
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Written By: Reuters
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