Agility court appeal to avert US charge fails

Logistics firm unsuccessful in overturning fraud prosecution charge.


Agility has been dealt another blow in its attempt to avoid prosecution on claims it overcharged the US Army after a US appeals court ruled against the logistics firm’s appeal.

The Kuwaiti company has been accused of overcharging the US Army on supply contracts over a 41 month period the US government says totaled US $9.8 billion.

According to Reuters, the ruling signed on the 12th July by the US Court of Appeals for the 11th Circuit in Atlanta should allow the fraud case to proceed after more than a year of legal argument over whether the company was correctly served with an indictment by U.S. prosecutors in 2009.

The firm had argued that the original lawsuit was invalid because prosecutors served the indictment only on the company's US subsidiary, Public Warehousing Company KSC and not on the Kuwait-based parent company known as Agility.

"We lack jurisdiction over this appeal and appellee's (government's) motion to dismiss the appeal is granted," said the court order signed July 12, Reuters reports.

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