Among other parties, Panalpina Houston had been named as a defendant in a qui tam civil complaint filed several years ago by a private party on behalf of the U.S. Government. In the complaint it is alleged that, in connection with the provision of logistics services, a former employee of Panalpina has provided unlawful entertainment to employees of a customer. According to a settlement agreement reached with the U.S. Authorities, Panalpina will pay USD 375,000.
The civil complaint concerns nominal entertainment expenses allegedly incurred in violation of the U.S False Claims Act by one of Panalpina’s former employees which involved employees of Kellogg, Brown and Root (KBR) under the U.S. Government’s Logistics Civil Augmentation Programs (Logcap III). The majority of the alleged expenses involved the purchase of soda, meals and golf green fees. Under the terms of the settlement agreement, neither Panalpina nor the U.S. Government admit or deny any of the allegations, but have mutually agreed to close the investigation and dismiss the complaint, which was filed by qui tam plaintiffs, with prejudice.
Panalpina has agreed to pay to the U.S. Government USD 375,000 to settle the matter, which is substantially lower than settlement amounts paid by other defendants named in the plaintiffs’ complaint.
This low settlement amount reflects Panalpina’s cooperation, its strong compliance program, and the fact that the alleged activities involved a former employee, without the knowledge, approval or involvement of present management. After learning of the allegations, Panalpina conducted an internal investigation and concluded that any persons allegedly involved in any improper activity were no longer employed by the company.
Panalpina is committed to maintaining the highest ethical standards in its business operations.
The Panalpina Group
The Panalpina Group is one of the world's leading suppliers of forwarding and logistics services, specializing in end-to-end supply chain management solutions and intercontinental air freight and ocean freight shipments. Thanks to its in-depth industry know-how and state-of-the-art IT systems, Panalpina provides globally integrated door-to-door forwarding services tailored to its customers' individual needs. The Panalpina Group operates a close-knit network with some 500 branches in over 80 countries. In a further 80 countries, it cooperates closely with partner companies. Panalpina employs approximately 14,000 people worldwide.