A Kuwaiti logistics company accused of inflating prices and defrauding the US government for contracts to feed American troops has settled a lawsuit.
The Justice Department says the company, Agility Public Warehousing, has agreed to pay $95 million and plead guilty to misdemeanor theft of government funds.
Federal prosecutors say in an indictment that Agility manipulated a complex funding formula to defraud the government of at least $68 million. The indictment says the company provided false invoices and statements to a logistics center, bought high-priced food items and then knowingly inflated prices.
Agility has been suspended from federal government contracting since its indictment in 2009. It provided food for US troops in in Iraq, Kuwait and Jordan.
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