US$600m settlement reported for Agility fraud case
A preliminary agreement has been reached in Agility's US court case for the alleged overcharging on US$8.5 billion worth of government contracts, according to a report in Kuwait’s Al-Jarida newspaper.
The company, which is the Middle East’s largest logistics firm, is expected to pay around US$600 million over three years to settle the fraud charges, the Arabic-language daily stated on Friday, citing unnamed sources.
The settlement - which could be announced “in a day or two” - will mean the return of U.S. government business to Agility.
"It (the settlement)... could include some slight changes, especially regarding the return of all contracts or the majority of them," the paper was quoted as saying by Reuters.
Agility is currently in the middle of a large-scale programme to reduce its international workforce by thousands to“help to position the company for sustainable long-term success”, it told LogisticsMiddleEast.com.