FedEx Corp., FedEx Express, Inc. and FedEx Corporate Services, Inc. have been indicted by a San Francisco federal grand jury with conspiracies to traffic controlled substances and misbranded prescription drugs, according to U.S. Attorney for the Northern District of California Melinda Haag.
FedEx has been summoned to appear in federal court in San Francisco on July 29. At that time, the company intends to plead not guilty, according to Patrick Fitzgerald, senior vice president marketing and communications. “We will defend against this attack on the integrity and good name of FedEx and its employees,” said Fitzgerald in a statement.
Assistant U.S. Attorneys Kirstin M. Ault and Kyle F. Waldinger are prosecuting the case, with the assistance of Maryam Beros and Rawaty Yim.
According to a statement from Haag’s office, the indictment claims that since at least 2004, FedEx knew that illegal Internet pharmacies were using its shipping services to distribute controlled substances and prescription drugs in violation of the Controlled Substances Act (CSA), Food, Drug and Cosmetic Act (FDCA) and numerous state laws to addicts and drug dealers.
“The advent of Internet pharmacies allowed the cheap and easy distribution of massive amounts of illegal prescription drugs to every corner of the United States, while allowing perpetrators to conceal their identities through the anonymity the Internet provides,” said Haag in the statement. “This indictment highlights the importance of holding corporations that knowingly enable illegal activity responsible for their role in aiding criminal behavior.”
Haag was confirmed as U.S. attorney for the Northern District of California in August 2010. Prior to her appointment, Haag was a partner with Orrick, Herrington & Sutcliffe, where she specialized in litigation and trial work. Before that, Haag was an assistant U.S. attorney in the Central District of California and the Northern District of California. She also served as a litigation associate at Gibson, Dunn & Crutcher and a partner at Landels, Ripley & Diamond.