UPS to pay $8.4M to settle claim of overcharging government

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FILE- In this Dec. 19, 2018, file photo a UPS driver prepares to deliver packages. UPS said Monday, Sept. 9, 2019, that it expects to hire about 100,000 seasonal workers and pay them more to handle the avalanche of packages shipped between Thanksgiving and Christmas. (AP Photo/Patrick Semansky, File)

WASHINGTON (AP) — The Justice Department says United Parcel Service Inc. must pay $8.4 million to settle allegations that the company was overcharging the federal government for package deliveries.

The settlement was announced Friday.

The Justice Department alleges UPS failed to abide by the terms of its contract with the General Services Administration and overcharged the government for services from 2007 until 2014. The government says its contract required UPS to provide the same lower prices that were offered to other customers.

Assistant Attorney General Jody Hunt said in a statement that the settlement shows the government “will hold accountable” contractors who try to overcharge the federal government.

The settlement resolves the allegations, but there was no determination of liability. UPS did not immediately respond to a message seeking comment on Friday.

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