FedEx Corporation (FDX) Could Face $820 Million Fine: Liz MacDonald

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FedEx Corporation (NYSE:FDX) is facing drug trafficking charges. A federal grand jury in San Francisco accused FedEx of conspiring to deliver drugs for illegal internet pharmacies. FedEx pleads ‘not guilty’ to the charges against them. Fox Business Network’s Liz MacDonald talked on Fox Business about FedEx’s stand on this.

fedex

MacDonald reported that FedEx Corporation (NYSE:FDX) is battling it out in the federal court at San Francisco. She also said that FedEx is claiming not guilty to 15 federal charges filed against them. She pointed out that FedEx was charged on delivering drugs like pain killers, anti-anxiety medications and other controlled substances for illegal pharmacies.

“FedEx was indicted on July 17th on these 15 counts, including conspiracy and drug trafficking as well as the other charges,” MacDonald said.

She reported FedEx’s stand on this and said that they are not claiming responsibility for the 10 million packages that was delivered. She quoted the FedEx statement, “The privacy of our customers is essential to the core of our business. This privacy is now at risk, based on the charges by the Department of Justice.”

She said that FedEx Corporation (NYSE:FDX) could face an $820 million fine. She pointed out at Department of Justice’s stand on this to update and deliver the indictment to Grand Jury by August 28.

She said that FedEx is facing conspiracy and drug trafficking charges because of transporting drugs for illegal web pharmacies based on the substance questionnaire filled by those internet pharmacies before transportation.

MacDonald pointed out at similar charges filed against another transportation company, United Parcel Service, Inc. (NYSE:UPS). UPS was fined $40 million for transportation of drugs for illicit pharmacies. She said that FedEx might face a much higher fine. She feels that the fine amounts are based on the revenues generated by these companies through that particular illegal transportation.

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