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June 23, 2016

FedEx Fights the Feds — and Wins

Good news for all those sending graduation presents this month to your loved ones:  FedEx won’t be forced to open your packages to ensure you are sending only legal items! 

That’s because the global shipping company fought back against federal prosecutors who accused it of conspiring with online pharmacies to ship illicit drugs. 

The Department of Justice claimed two years ago that FedEx “was aware for as long as a decade that its services were being used to distribute prescription treatments from illicit virtual dispensaries where the drugs could be purchased without a legal prescription,” reports Fortune.

Of course, the only way the company could’ve known whether shipments contained the alleged contraband would’ve been to rip open the packages and look inside.

Further, the Wall Street Journal reports that the federal judge in the case “noted that the Drug Enforcement Administration appeared ‘unwilling or incapable’ of providing a list to FedEx of illegal pharmacies. He also asked why Justice wasn’t prosecuting the United States Postal Service” for presumably the same thing.

In the other words, the federal government apparently wanted FedEx to do the job of law enforcement by searching the packages of some of its customers and working to identify and track the work of illegal pharmacies. It’s no wonder prosecutors dropped the charges before the case even went to trial.

Unfortunately, United Parcel Service (UPS) chose to settle instead of fighting the feds, paying a $40 million fine.

The original prosecutor, Melinda Haag, is not even around to apologize to FedEx. That’s because she’s since left to join a big law firm where she leads the white collar criminal defense practice.

Oh, the irony. 

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