Yellow (YRC) settles with Defense Department for $6.85M

AJ Gonzalez | March 16, 2022

Transport Dive, March 15, 2022 , Senior Reporter

  • Yellow will pay $6.85 million to the U.S. Department of Defense to settle claims made by the Justice Department in 2018 that the LTL carrier systematically overcharged the federal government for shipments that came in lighter and cheaper than what was paid for.
  • Yellow, then known as YRC, had a Pentagon contract from September 2005 to October 2013. The Yellow defendants were paid based in part upon a shipment’s weight.
  • Yellow admitted no liability in the claims, which the Justice Department alleged went on for seven years. Both the company and the Pentagon agreed to a mutual release of certain claims against each other.

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