Trump Admin Lent $700M To Trucking Company Sued For Ripping Off Taxpayers
YRC Worldwide, a trucking company that faced potential bankruptcy earlier this year, has received a $700 million loan from the US treasury, according to CNN Business.
- For a company that is now only worth $70 million and had its stock drop 27 percent in the last year, that sum is astronomical. The company has been struggling for years, its stock dropping 85 percent in the last five years.
- The loan is part of a program that provides support to businesses that are critical to national security. The treasury justified the loan to YRC Worldwide by arguing that the company provides the majority of the trucking services moving pallet sized shipment for the US military.
However, the loan comes as the trucking company is also being sued by the Defense Department.
- The suit claims that YRC Worldwide overcharged the department and failed to comply with contract terms. The civil complaint states that YRC "reweighed thousands of shipments and suppressed the results whenever they indicated that a shipment was actually lighter than its original estimated weight."
- The lawsuit claims “the practice went on for seven years and cost the Defense Department millions of dollars.”
- In reference to the suit, YRC stated that it was "a contractual dispute which originated in 2009 and predates the current board and CEO by more than a decade." The company added:
"A motion for dismissal has been pending for 10 months. There has been no impact on the Department of Defense relationship."