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.