Department of Justice

UPS coughs up $5.3M over alleged Postal Service fraud

Brown tail section of UPS plane with American Airlines building in background and air containers on the tarmac.

UPS has agreed to pay nearly $5.3 million to resolve an investigation into allegations it defrauded the U.S. Postal Service for transport of international mail, the Department of Justice announced Monday.

The express delivery company falsified bar code scans of mail containers delivered to Postal Service facilities or federal facilities to make it appear it was meeting requirements for on-time delivery, and ensure full payment, according to the federal allegations. 

The Postal Service hired UPS...

https://www.freightwaves.com/news/ups-coughs-up-53m-over-alleged-postal-service-fraud

Nikola projects production of 300-500 battery-electric trucks in 2022

Nikola Corp. plans to build 300 to 500 battery-electric Class 8 trucks this year and record up to $150 million in revenue. It expects to be profitable on a gross margin basis in 2023.

After months of negative stories centering on the alleged misdeeds of Trevor Milton, the company’s founder and former executive chairman, the Phoenix-based company is finally able to focus on producing advanced technology trucks. 

Nikola has contracts, letters of intent and memorandums of understanding for 1,385...

https://www.freightwaves.com/news/nikola-projects-production-of-300-500-battery-electric-trucks-in-2022

‘Collusion’ drumbeat leads to multilateral probe of shipping lines

Container vessels at port with gantry cranes stretched overhead on clear day.

U.S. exporters and logistics companies aren’t the only ones banging on the government’s door to take action against global container lines for alleged service failures and unfair pricing during the pandemic. 

The clamor from global forwarder and shipper organizations about anticompetitive behavior got so loud that five competition authorities, including the U.S. Department of Justice, on Friday established a working group that will meet regularly to share intelligence and coordinate...

https://www.freightwaves.com/news/collusion-drumbeat-leads-to-multilateral-probe-of-shipping-lines

Nikola settles with SEC, agrees to pay $125M fine over 2 years

Nikola Corp. has agreed to pay $125 million over two years to settle a Securities and Exchange Commission complaint over fraud claims by founder Trevor Milton. 

The electric truck and hydrogen making startup is seeking to get reimbursed by Milton, who faces trial on criminal fraud charges next April.

The SEC order found that Nikola violated the anti-fraud and disclosure control provisions of federal securities laws. Nikola (NASDAQ: NKLA) neither admitted nor denied wrongdoing in the expected...

https://www.freightwaves.com/news/nikola-settles-with-sec-agrees-to-pay-125m-fine-over-2-years

Judge denies venue change for Trevor Milton’s fraud trial

A federal judge denied a motion by Nikola Corp. founder Trevor Milton’s attorneys to move his fraud trial out of New York, saying he bought and sold shares on the New York-based Nasdaq, making the venue appropriate.

Milton is charged with three counts related to allegations that he defrauded investors in the startup electric truck company by making false statements. He is free on $100 million bail pending a trial scheduled for April 4, 2022.

Milton claimed he should not have been charged in New...

https://www.freightwaves.com/news/judge-denies-venue-change-for-trevor-miltons-fraud-trial

Legal match over fate of AB5 has new player: US solicitor general

Elizabeth Prelogar took over as the U.S. solicitor general on Oct. 28. On Monday, the U.S. Supreme Court made her new job extremely important to the trucking industry in California.

After a conference Friday on the California Trucking Association’s appeal of lower court rulings that if allowed to stand would implement independent contractor rule AB5 in the state’s trucking business, the court announced Monday that it was seeking the opinion of the solicitor general’s office on the case, known...

https://www.freightwaves.com/news/legal-match-over-fate-of-ab5-has-new-player-us-solicitor-general

Starting over: Workhorse overhaul could lead to more than electric vans

Workhorse Group reported negative revenue and profits in Q3 as new CEO Rick Dauch grounded production of the C-1000 electric delivery van, jettisoned 25% of the hourly workforce, overhauled the executive leadership and dropped a lawsuit against the U.S. Postal Service over the company’s unsuccessful bid to build battery-powered mail trucks.

The Loveland, Ohio-based company also acknowledged Tuesday that it is being investigated by the Securities and Exchange Commission and the Department of...

https://www.freightwaves.com/news/starting-over-workhorse-overhaul-could-lead-to-more-than-electric-vans

Nikola will push indicted founder to reimburse expected $125M SEC fine

Nikola Corp. set aside $125 million to potentially settle a Securities and Exchange Commission complaint but will seek to get indicted founder Trevor Milton to reimburse the civil penalty and other costs.

The startup electric truck maker is awaiting full SEC approval of the settlement, which covers alleged fraudulent claims by Milton, the company founder and former executive chairman. He faces criminal trial next April on three federal fraud counts. Milton is free on $100 million bail.

“We...

https://www.freightwaves.com/news/nikola-will-push-indicted-founder-to-reimburse-expected-125m-sec-fine

Navistar will destroy old engines, pay $52M to settle federal complaint

Navistar Inc. is settling Clean Air Act violations with the U.S. Justice Department by paying a $52 million fine and destroying old engines to prevent oxides of nitrogen (NOx) pollution from fouling the atmosphere.

Navistar, now a subsidiary of Volkswagen AG’s Traton Group, has borne the burden of deciding against using the selective catalyst reduction (SCR) form of emissions control that other truck makers adopted following tougher pollution rules going into effect in 2010.

In the Justice...

https://www.freightwaves.com/news/navistar-will-destroy-old-engines-pay-52m-to-settle-federal-complaint

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