FedEx Beats U.S. Case Over Illegal Online Drug Shipments

  • Trial cut short over insufficient proof of wrongdoing
  • U.S. drops charges carrying potential $1.6 billion in fines
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Charges that FedEx Corp. intentionally shipped illegal online prescriptions were thrown out at the request of federal prosecutors, ending a trial and killing conspiracy and money laundering counts that carried as much as $1.6 billion in fines.

The unusual decision to drop the two-year-old case abruptly during trial, before FedEx even put on its defense, marks a vindication for the package-delivery company, which maintained its innocence and said it helped law enforcement investigate pharmacies suspected of selling drugs illegally. FedEx opted for a trial after drugstore chains and companies including United Parcel Service Inc. chose not to fight allegations involving illegal drug sales and deliveries.