By Jim Donovan: United Parcel Service, the world’s largest delivery service, is in hot water after it was alleged that the company didn’t deliver packages on time, and then they lied about it. UPS will pay $25 million to settle complaints that it kept false records to hide late deliveries of overnight packages to government customers.
UPS guaranteed delivery of overnight packages by a certain time. The whistleblower lawsuit charges that from 2004 to 2014, UPS recorded incorrect delivery times to make it seem as if the packages arrived on schedule and gave false reasons for being late.
A UPS spokeswoman said the company still disputes the government’s claim but settled the case to avoid long and expensive litigation. The settlement does not include an admission of liability by UPS, said the spokeswoman, Susan Rosenberg. She said the company has improved training and technology since learning of the allegations.
The Department of Justice said Tuesday that the payment settles a whistleblower lawsuit filed by a former UPS employee, who will get $3.75 million.