FedEx Charged With Helping Online Pharmacies Ship Drugs

FedEx boxes unloaded off delivery truck in New York after FedEx Corp. reported quarterly profit and revenue data that missed Wall Street estimates FedEx is trading at around $100.20 a share. So far this year, the stock has appreciated 9.2 percent.

According to the Department of Justice, FedEx filled the role of drug runner for two illegal pharmacies for 10 years. The Tennessee-based delivery company is charged with shipping drugs to people without prescriptions, according to the Associated Press.

The company denied the allegations. "We will plead not guilty. We will defend against this attack on the integrity and good name of FedEx and its employees," company spokesman Patrick Fitzgerald said in a written statement.

According to the charges, before stopping in 2010, FedEx had been helping two related online pharmacies by delivering drugs like Ambien, Valium and Xanax to customers who did not have prescriptions and had “no legitimate medical need,” the AP wrote. 

When Federal authorities launched the investigation in 2012, United Parcel Service (UPS) was also included. According to the AP, the company paid $40 million to “resolve” the charges. On a similar charge, Google paid $500 million to settle allegations that they made money off illegal pharmacy advertisements.

In 2012, FedEx disclosed the investigation, saying it had done nothing wrong and intended to fight the charges. In an interview with the Wall Street Journal in November 2012, Fitzgerald said the investigation "has now become absurd and deeply disturbing.”  

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