In a recent whistleblower lawsuit, UPS was forced to pay $4.2 million in order to settle False Claims Act late deliveries claims.

The UPS whistleblower lawsuit alleged that the shipping company deceived their customers by lying to avoid paying refunds to state and city governments.

After agreeing to pay $25 million earlier this year, UPS, or the United Parcel Service, agreed to pay the extra $4.2 million to state and city governments, thereby resolving allegations that the company lied about its delivery records.

The whistleblower received $3.75 million of the initial $25 million settlement for filing the False Claims Act (FCA) allegations against UPS. The whistleblower was a former UPS employee who had worked at the company since 2004.

During his time working with the shipping company, the whistleblower noticed that the company consistently falsified delivery information. His concerns were ignored, and after leaving the company he filed a whistleblower lawsuit to call attention to the company’s deception.

In a statement from the U.S. Department of Justice, it was reported that over a period of ten years (from 2004 to 2014), UPS concealed its failure to comply with delivery guarantees routinely.

The company allegedly recorded inaccurate delivery times for their packages to make it appear as though the packages were delivered on time.

Because UPS offers delivery guarantees, late deliveries allow customers to request refunds. By actively concealing the real delivery times, UPS essentially kept customers from receiving their rightful refunds.

UPS provides delivery services for many agencies across the U.S. The UPS guaranteed delivery service is often essential for government agencies who are sending important documents and other packages.

The $4.2 million settlement will be paid out to 14 separate states, with New York receiving the highest amount at $1.5 million.

This investigation and subsequent settlement would not have been possible without the former UPS employee noticing his company’s deception and acting as a whistleblower.

Whistleblower Lawsuits

Whistleblowers are individuals who report the fraud and illegal activities of their current or former employers.

While a person considering becoming a whistleblower may be worried that they will get in trouble for their actions, the whistleblower is typically given a substantial reward – often between 15 and 30 percent of the money recovered in the subsequent whistleblower lawsuit. In this UPS whistleblower lawsuit, the whistleblower received $3.75 million.

Many employees choose to come forward as whistleblowers because they do not feel right about their employer’s actions. A whistleblower lawsuit can be filed while working at the company, but can also be filed after having left the company – as the UPS whistleblower did.

If you believe you have witnessed some kind of fraud by your current or former employer, you may be able to file a whistleblower lawsuit (also known as a qui tam lawsuit) on behalf of the government.

The Whistleblower Lawsuit is Case No. 1:11-cv-00890, in U.S. District Court for the Eastern District of Virginia.