Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

YRC Allegedly Overcharged Department of Defense

YRC is being accused of overcharging for shipments it hauled for the Department of Defense and then lying to the government to cover it up. YRC calls the claims "totally without merit."

December 17, 2018
YRC Allegedly Overcharged Department of Defense

YRC is being accused of overcharging for shipments it hauled for the Department of Defense and then lying to the government to cover it up. YRC calls the claims "totally without merit."

Photo: Deborah Lockridge

2 min to read


The Department of Justice has sued YRC and its subsidiary companies Yellow Transportation and Roadway Express for allegedly overcharging for freight carrier services and for lying to the government to hide its alleged misconduct.

YRC is being accused of defrauding the Department of Defense by millions of dollars over a seven-year period by overcharging for shipments based on weight and subsequently lying about it to the DOD. The company allegedly reweighed thousands of shipments and suppressed the results whenever the shipment was lighter than the initial estimate, thereby charging DOD based on knowingly inflated weights.

Ad Loading...

“When a federal agency, such as the Department of Defense, enters into a service contract with a private corporation or company, the expectation is that the agreement will be administered in good faith,” stated James P. Kennedy Jr., U.S. Attoreny for the Western District of New York. “In this case, YRC did not legally fulfill its agreed upon obligations to the Defense Department, choosing instead to line its pockets with tax payer’s dollars. Such actions are fraudulent and illegal.”

The original lawsuit in the case was filed by a whistleblower named James Hannum under the False Claims Act, which allows private citizens to bring suits on behalf of the United States for false claims and share in the recovery. Hannum was previously employed by YRC. DOJ initiated a nine-year investigation into the claims, culminating in the current accusations.

YRC issued a statement about the lawsuit contesting the accusations saying, “These claims are totally without merit.” The company said it cooperated in the nine-year investigation and made every effort to address the government’s questions. YRC’s business with DOD only constitutes 1% of the company’s annual revenue, according to the company.

Ad Loading...

“We are confident that the evidence will demonstrate YRC Freight acted consistently with our contract and all applicable guidelines. We look forward to continuing to provide essential and valuable logistics services to the U.S. government and all our customers,” the company stated.

More Fleet Management

Red Kodiak-branded autonomous tractor with Charger-branded trailer backed up to warehouse
Fleet Management•October 30, 2026

Kodiak Lines Up Fleets for Driverless Trucking

An agreement for 75 trucks, a new Texas freight lane, and progress on safety validation move Kodiak closer to its planned driverless highway launch.

Read More →
Illustration with Star of David and EEOC logo
Fleet Management•by News/Media Release•October 28, 2026

ITS Logistics Settles Religious Harassment Case

The Nevada-based logistics firm agreed to pay more than $396,000 to settle a religious harassment charge involving an employee's Jewish identity.

Read More →
Truck on divided interstate highway driving toward sunrise
Fleet Management•October 27, 2026

Your Trucks Are Busy. That Doesn’t Mean They’re Winning.

High utilization doesn’t always mean strong margins. Looking beyond the current load can help fleets make better dispatch decisions and get more value from each truck’s time.

Read More →
Ad Loading...
ATA economist Bob Costello speaking beside a graph showing truckload operating costs rising as freight revenue per mile declined after 2022.
Fleet Management•by Deborah Lockridge•October 22, 2026

Why This Trucking Recovery Is Different

Freight demand remains sluggish, but rising costs and tougher enforcement have taken enough capacity out of the market to change the outlook for motor carriers.

Read More →
PS Coach tablet interface showing a driver’s coaching inbox, safety event video and coaching advice for a harsh-braking event.
Fleet Management•by News/Media Release•October 21, 2026

Platform Science Adds Dispatch and Safety Tools

Four additions to PS Fleet help fleets monitor loads, manage driver coaching, share truck locations and adjust video system settings.

Read More →
Screen capture showing PrePass Intelligence data on tolls
Fleet Management•by News/Media Release•October 21, 2026

PrePass Intelligence Mines Fleet Bypass, Toll and Safety Data

PrePass Intelligence helps fleets measure bypass savings, flag potential toll overcharges, and spot suspicious transactions by combining data from separate systems.

Read More →
Ad Loading...
Computer screen showing examples of what fleets could ask Motive AI Agents to do
Fleet Management•by Staff•October 20, 2026

Motive Adds AI Agents for Fleet Operations

New tools automate follow-up on fleet data, from maintenance work orders to driver alerts, with two-way voice conversations planned for later this year.

Read More →
Graphic art with a heavy-duty tractor trailer and a work truck with the words "trivia lunch"
Fleet Management•by Lauren Fletcher•October 19, 2026

Can You Beat Our Trucking Trivia Challenge?

Test your truck knowledge with 19 trivia questions from Heavy Duty Trucking Exchange. Can you keep up with the fleet pros?

Read More →
Four horizontal and two vertical video screens show different aspects of BeyondTruck's new compatibility engine
Fleet Management•by Deborah Lockridge•October 19, 2026

BeyondTrucks Adds Rules Checks to Dispatch

New Compatibility Engine checks driver qualifications, equipment requirements and fleet policies before loads are dispatched.

Read More →
Ad Loading...
Gloved hand fueling a truck beside a graphic listing ATRI’s top three trucking concerns for 2026: fuel prices, lawsuit abuse reform and CSA.
Fleet Management•by Deborah Lockridge•October 19, 2026

Diesel Prices Hijack Trucking’s Worry List

ATRI’s annual survey finds cautious optimism about freight, but diesel costs, litigation, and insurance continue to squeeze fleets. Drivers have different priorities on several issues.

Read More →