YRC Worldwide Inc. (YRCW) Accused of Defrauding Government
According to the complaint against the company’s officers and directors for breaches of fiduciary duties, unjust enrichment, and waste of corporate assets from March 10, 2014 through December 14, 2018, YRC has violated the False Claims Act since at least 2005 by defrauding the United States Department of Defense for freight carrier services. On December 14, 2018, the Justice Department revealed that it had filed a complaint against YRC for systematically overcharging the government. On this news, YRC stock declined drastically and still trades significantly below its class period high of $28.11. Before the fraud was exposed, however, company insiders not only failed to maintain an adequate system of oversight, disclosure controls and procedures, and internal controls, but also sold almost $9 million of stock at artificially inflated prices.