Yellow to pay $6.8M to settle Department of Defense lawsuit

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Trucking news and briefs for Friday, March 18, 2022:

Yellow settles decade-old lawsuit with Department of Defense

Yellow Corp. (CCJ Top 250, No. 5) has reached an agreement with the United States government, settling a nearly 13-year-old civil litigation with the Department of Defense relating to credits for the reweigh of certain freight shipments between 2005 and 2013, all of which pre-date current management, Yellow said.

According to the Department of Justice, Yellow will pay approximately $6.85 million to resolve allegations under the False Claims Act that they “knowingly presented false claims to the U.S. Department of Defense (DOD) by systematically overcharging for freight carrier services and making false statements to hide their misconduct.” The government alleged that Yellow (then branded as YRC) fraudulently billed the DOD based on higher weights when, after reweighing the shipments, they allegedly knew the weights were lower.

Yellow said that in reaching that agreement, it admitted no liability while denying the government’s core allegations.

“We remain confident that we complied with the then-existing rules and our contractual obligations,” said Leah Dawson, Yellow’s executive vice president and general counsel. “While we believe we had strong defenses, we decided, in the best interests of all parties, to resolve this matter for a small fraction of the amount originally demanded.”

Yellow said that as a vital partner in the DOD’s supply chain, Yellow’s freight professionals transport mission-critical goods to and from military installations across the United States.

“We are pleased to have come to a resolution,” said Darren Hawkins, CEO of Yellow. “Now we can continue to focus on the important work ahead. With our nation’s current supply chain constraints and the critical role Yellow plays in delivering freight, there’s no time for distraction. Putting this matter behind us also helps Yellow move forward with its corporate mission of transforming our nearly 100-year-old company into one of the nation’s preeminent super-regional and long-haul less-than-truckload carriers.”

TForce Logistics launches medical logistics division

TForce Logistics, a subsidiary of TFI International (CCJ Top 250, No. 7) has formed TForce Medical Logistics as a dedicated division focused exclusively on the health care market.

The new division responds to an evolving healthcare market that is becoming more decentralized, has increased demand for last-mile home delivery, requires more flexible and agile supply chain services and requires innovative services and solutions to help reduce costs, noted TForce Medical Logistics President Rich D'Amico.

“While TForce Logistics has for many years served healthcare clients as part of our overall portfolio, as the market has evolved, we recognized our clients sought a more focused and targeted approach to service delivery,” said D'Amico “With that goal in mind we established TForce Medical Logistics as a dedicated operating division for the health care market, with unique capabilities, resources and services.”

Under the new structure, TForce Medical Logistics is focused on four primary verticals:

  • Pharmacy. Support for both closed-door business-to-business, as well as business-to consumer, delivery of prescriptions as well as support for other home services and pharmacy supply chain needs.
  • Laboratory. Secured, expedited transport of laboratory specimens with dedicated personnel and superior technology to provide pre-routed pickup and delivery or on-demand services.
  • Hospital. Structuring and operating comprehensive solutions in support of all hospital operations, including transport and delivery of specimens, pharmaceutical, supplies, patient records and others, in a secured chain-of-custody environment.
  • Medical Devices and Supplies. Dedicated services for health care equipment and supply manufacturers and distributors for secure delivery of goods to hospitals, clinics and patient residences for prescribed home care needs.

TForce Medical Logistics will offer scheduled routes, expedited deliver, business-to-home and distribution services.

In the United States, TForce Medical Logistics deploys an integrated network of more than 150 operating facilities, with expert resources, leading technologies, and a fleet of more than 5,000 delivery partners and equipment. TForce Medical Logistics’ network is purpose-designed for the unique demands of health care providers and consumers and covers all major metropolitan communities in the U.S.

Trucking charity donates to Ukraine relief efforts

The charitable arm of the American Trucking Associations — the Trucking Cares Foundation — announced it is donating more than $40,000 to a trio of organizations involved in Ukrainian humanitarian relief efforts.

"The war unfolding in Ukraine is a terrible tragedy," said TCF Chairman Phil Byrd, president and CEO of Bulldog Hiway Express. "The trucking industry stands with the Ukrainian people, and we're proud to do even a little bit to ease their suffering."

The Trucking Cares Foundation board approved donations totaling $42,500 to three organizations involved in relief efforts in Ukraine and its neighbors: Save the Children, the International Red Cross and the United Nations Children's Fund. These organizations have been recommended by the group Trucking & Logistics Professionals for Ukraine, who have launched a fundraising and awareness campaign in response to the crisis.

"The Trucking Cares Foundation was established to help mobilize the trucking industry in response to disasters — natural and manmade — so providing relief and comfort to Ukrainians suffering as a result of this war is something we are called to do," said American Trucking Associations Chairman Harold Sumerford Jr., CEO of J&M Tank Lines and the newest member of the TCF Founders Club.