U.S. District Court Judge Charles Breyer denied the company’s motion, which alleged FedEx is protected from litigation as a common carrier.
United States District Judge Charles Breyer denied a motion by FedEx Corp. Thursday to dismiss Department of Justice charges of conspiracy to distribute controlled substances. The charges stem from FedEx’s alleged role in transporting illegal prescription drugs.
The shipping giant argued FedEx is legally protected from such charges as a “common carrier,” a transportation company paid to take cargo regardless of its contents. Judge Breyer, however, said the common carrier exemption does not apply to the charges levied against FedEx in this case, namely a conspiracy to distribute illegal drugs.
If such actions were considered legal under the common carrier exemption, Breyer argued, there would be nothing to stop an individual from becoming a common carrier with the intention of distributing illegal drugs and avoid prosecution.
In a statement from FedEx, the company accepted the court’s ruling, but said it will continue to defend itself. The company pleaded not guilty when the Justice Department filed its original indictment in July, which alleges FedEx ignored warnings from the government it could face legal action for delivering drugs ordered from online pharmacies.
If found guilty, FedEx would face a maximum fine of $1.6 billion or twice the revenues allegedly made from engaging in the illegal activities, according to the U.S. attorney’s office. FedEx has previously disputed the fine amount, saying its revenues stemming from pharmacy shipments were far less than $820 million.
The case represents a key test of the legal responsibility of shipping companies to police the contents of delivered cargo. In its motion to dismiss, FedEx argued it can’t reasonably be expected to inspect each of its over 10 million daily shipments for illegal items and that the common carrier exception is intended to protect transportation companies from legal responsibility for such actions.
FedEx loses motion to dismiss federal drug indictment
