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  1. #1
    On A Mission

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    Default Military Sues YRC

    https://www.wsj.com/articles/u-s-sue...ts-11544824110

    An honest company like YRC wouldn't do something like this, would the

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  3. #2
    Taking A Stand!!!

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    Default Re: Military Sues YRC

    Quote Originally Posted by slavenomore View Post
    https://www.wsj.com/articles/u-s-sue...ts-11544824110

    An honest company like YRC wouldn't do something like this, would the
    This is a membership site slave however on rare occasion I have also shared such sites when there is enough info to give us an idea of what is going on. Here are some more sites with this story.

    U.S. Sues Freight Carrier YRC Over Military Shipments

    For more than seven years, from 2005 to at least 2013, workers for the companies reweighed thousands of shipments and didn’t disclose the results when those weights came in under the original estimate, the lawsuit alleges.

    “When a federal agency, such as the Department of Defense, enters into a service contract with a private corporation or company, the expectation is that the agreement will be administered in good faith,” U.S. Attorney James P. Kennedy Jr. said in a statement.

    YRC General Counsel Jim Fry said in a statement the government’s allegations were “completely without merit,” adding the company has cooperated with all federal inquiries. “We are confident that the evidence will demonstrate that YRC Freight acted consistently with our contract and all applicable guidelines,” Mr. Fry said.

    YRC Worldwide’s shares tumbled more than 28.4% in trading Friday, to $3.17 a share.
    https://www.wsj.com/articles/u-s-sue...hp_minor_pos13

    https://www.openeyesopinion.com/frei...us-government/
    Last edited by ABFwife; 12-14-2018 at 08:58 PM.

  4. #3
    I Am Rocking Now

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    Default Re: Military Sues YRC

    Then on the other hand how many shippers intentionally under-report shipping weight or freight classification with the intent to gain a lower cost? I'd say about 99% of them.

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  6. #4
    Retired !

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    Default Re: Military Sues YRC

    We all know. Most shipments aren't reweighed. The ones that got the most attention were from shippers that habitually under reported weights all the time. Most shippers didn't have a scale, so a guess was what was put on the BOL.
    Although it's been a while, our terminal ran a contest for the dock men. Whoever got the most reweighs got a prize each month. They also had to have a supervisor sign off on each weight.

    I say the lawsuit is crap. But that's what drives this country now. Lawyers.

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  8. #5
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    Default Re: Military Sues YRC

    Who is more corrupt with the way it's run and the numbers?
    The U.S Government?
    Or YRC?

    Maybe they work together as did the banks last time to bully the contract which is coming.
    Banks, the government, the big corporations....all are one.

  9. #6
    Taking A Stand!!!

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    Default Re: Military Sues YRC

    Government Lawsuit Against YRC Shines Light On LTL Reweighing Practices

    In the late 1990s, YRC Worldwide, Inc., (NASDAQ: YRCW) then known as Yellow Corp., was considered by some the gold standard of freight inspection among less-than-truckload carriers. One long-time LTL executive who never worked at YRC recalls it being a leader in freight inspection practices, with between 80 to 90 people in its weigh and research department committed to doing inspections right. That staff didn't include the dock folks who were in charge of reweighing the freight to accurately assess its weight and cube, the executive said. The executive's carrier, at the time, had no workers in such a department.

    The US government would beg to differ on the executive's impression of YRC's competence and integrity. On Friday, the Department of Justice sued YRC Freight, YRC's long-haul carrier, and two affiliated carriers, Roadway Express and Yellow Transportation, for overcharging the Department of Defense for years by billing the DoD based on shipment weights that were higher than the actual weight of the goods hauled. According to the lawsuit, the carriers would reweigh thousands of shipments but suppress the results whenever they showed that a shipment was lighter than its original estimated weight. DOJ said YRC "knowingly made or used false statements" to hide its practices. The alleged actions, which were thought to have occurred between 2006-07 and 2013, cost the government millions of dollars, DOJ said, without disclosing specifics. Overland Park, Kan.-based YRC said Friday that the government's charges have no merit, that it will be vindicated by the evidence, and that it has worked with DoD for years in an effort to respond to the agency's concerns. It declined comment beyond its statement.
    https://finance.yahoo.com/news/gover...144426487.html

  10. #7
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    Default Re: Military Sues YRC

    YRC lawyers asking for dismissal of this lawsuit.

    YRC Freight Asks Federal Judge to Dismiss Government's False Claims Lawsuit
    Attorneys for YRC Freight Inc. have asked a federal judge to dismiss a U.S. Department of Justice civil lawsuit alleging that the company overcharged the federal government on shipments, stating that the plaintiff has failed to build a sufficient case despite years of investigation.
    In a lawsuit filed on Dec. 12, the government alleged that for a seven-year period through about October 2013, YRC and two of its former subsidiary motor carriers, Roadway Express and Yellow Transportation, overcharged the Department of Defense for thousands of shipments that actually were lighter, and thus cheaper, than the weights that the carrier charged the agency. The difference in charges totaled in the millions of dollars, the lawsuit claimed.
    However, in a Feb. 12 document in support of its motion to dismiss the case, YRC said the government “scraped the bottom of the barrel in a desperate attempt to somehow conjure up an appearance of some sort of purported business impropriety and comes up with nothing more than a few e-mails.”
    The allegations of fraud first surfaced in a November 2008 lawsuit filed by James Hannum, who said he worked in the Roadway Express Inc. Buffalo, N.Y., office as a weight and inspections supervisor for 22 years.
    https://www.ttnews.com/articles/yrc-...claims-lawsuit

  11. #8
    Old School... and proud!!

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    Default Re: Military Sues YRC

    YRC settles for $2.1M in investors’ lawsuit alleging overcharging

    YRC Worldwide has agreed to a settlement worth more than $2 million in a lawsuit filed by investors regarding claims of the company overcharging the Department of Defense.On April 19, Overland Park, Kan.-based YRC and plaintiffs in a class action lawsuit comprising of people who invested in the company reached a settlement after more than two years of litigation. If approved, YRC will pay plaintiffs $2.1 million. YRC rebranded itself as Yellow Corp. in early 2021.

    Filed in January 2019, the complaint accuses YRC and high-level executives, including then CEO James Welch, of violating federal securities laws in a companywide scheme. Investors claim that YRC overcharged for shipments based on weights that were higher than actual weights. At least $2 million per month was earned in “illicit revenue,” plaintiffs claim. However, the process did not go the other way around. If the customer’s freight was lighter than reflected on the invoice or bill of lading, YRC would go with the heavier weight. In other words, YRC corrected the weight when it benefited the company but ignored any corrections when it would result in a discount or credit.

    According to the lawsuit, this scheme was implemented from at least 2005.Investors also claim YRC intentionally failed to disclose a Department of Justice investigation.In December 2018, the Department of Justice filed a complaint in a whistleblower action. The complaint alleges that YRC defrauded the Department of Defense by millions of dollars in the scheme that lasted for more than seven years. The complaint was the result of an investigation that began in 2009. In March 2020, a federal district court dismissed the investors’ case. However, plaintiffs appealed that decision. YRC agreed to the proposed settlement before the appellate court could decide on the case. In July 2020, YRC received $700 million from the U.S. Department of Treasury. Part of the CARES Act, the Treasury received a nearly 30% equity stake in the company in exchange for the funds. Just a few months prior, YRC suspended insurance benefits for employees due to nonpayment of health contributions. The company has thousands of drivers and other employees.

    The decision to give YRC $700 million was not made without criticism. Just a few weeks after receiving the funding, the Congressional Oversight Commission released a report that scrutinized the Treasury Department’s decision.

    YRC has been rated noninvestment grade for over a decade, struggled financially for years before the COVID-19 crisis, and was at risk of bankruptcy before it obtained a loan from the Treasury,” the commission stated. “Under the CARES Act, a Treasury loan like this one is supposed to be ‘sufficiently secured’ or ‘made at a rate’ that ‘reflects the risk of the loan’ and ‘is to the extent practicable, not less than an interest rate based on market conditions for comparable obligations prevalent prior to the outbreak of the coronavirus disease 2019.’” LL

    https://landline.media/yrc-settles-f...-overcharging/
    If the customer’s freight was lighter than reflected on the invoice or bill of lading, YRC would go with the heavier weight. In other words, YRC corrected the weight when it benefited the company but ignored any corrections when it would result in a discount or credit.
    To be fair... YRC wasn't the only company guilty of this... ABF was too and I'm relatively certain many others as well...

  12. #9
    I Am Rocking Now

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    Default Re: Military Sues YRC

    Quote Originally Posted by Docker View Post
    To be fair... YRC wasn't the only company guilty of this... ABF was too and I'm relatively certain many others as well...
    I would assume they all do it and continue to do it.. until they get caught..

 

 

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