Yellow Corporation Settles Decade-Old Dispute with United States Government

Rhea-AI Summary

Yellow Corporation (NASDAQ: YELL) has settled a protracted civil litigation with the U.S. Department of Defense regarding freight shipment credits from 2005 to 2013, during which the company admitted no liability. This resolution allows Yellow's workforce to focus on transporting goods for over 200,000 customers, including the DoD, maintaining a long-standing relationship. CEO Darren Hawkins emphasized the importance of moving forward, particularly amid current supply chain challenges, as the company aims to transform into a leading super-regional and long-haul LTL carrier.

Positive

• Settlement with the U.S. government enhances focus on core operations.
• No admission of liability maintains company reputation.
• Continued service to the Department of Defense strengthens business relationships.

Negative

• None.

NASHVILLE, Tenn., March 10, 2022 (GLOBE NEWSWIRE) -- Yellow Corporation (NASDAQ: YELL) is pleased to announce that it has reached an agreement with the United States government, settling a nearly 13-year-old civil litigation with the Department of Defense relating to credits for the reweigh of certain freight shipments between 2005 and 2013, all of which pre-date current management.

In reaching that agreement, Yellow admitted no liability while denying the government’s core allegations. The agreement will enable the company and its 30,000 freight professionals to remain centrally focused on transporting goods for more than 200,000 customers, including the Department of Defense, with whom Yellow has enjoyed a customer relationship dating back to World War ll. The men and women of Yellow take great pride in the critical work they perform each day on behalf of America’s men and women in uniform. As a vital partner in the Department of Defense’s supply chain, Yellow’s freight professionals transport mission-critical goods to and from military installations across the United States.

“We remain confident that we complied with the then-existing rules and our contractual obligations. While we believe we had strong defenses, we decided, in the best interests of all parties, to resolve this matter for a small fraction of the amount originally demanded,” said Leah Dawson, Yellow’s executive vice president and general counsel.

“We are pleased to have come to a resolution,” said Darren Hawkins, CEO of Yellow. “Now we can continue to focus on the important work ahead. With our nation’s current supply chain constraints and the critical role Yellow plays in delivering freight, there’s no time for distraction. Putting this matter behind us also helps Yellow move forward with its corporate mission of transforming our nearly 100-year-old company into one of the nation’s preeminent super-regional and long-haul less-than-truckload carriers.”

About Yellow Corporation

Yellow Corporation has one of the largest, most comprehensive logistics and less-than-truckload (LTL) networks in North America with local, regional, national, and international capabilities. Through its teams of experienced service professionals, Yellow Corporation offers industry-leading expertise in flexible supply chain solutions, ensuring customers can ship industrial, commercial, and retail goods with confidence. Yellow Corporation, whose principal office is in Nashville, Tenn., is the holding company for a portfolio of LTL brands including Holland, New Penn, Reddaway, and YRC Freight, as well as the logistics company Yellow Logistics.

Please visit our website at www.myyellow.com for more information.

 

Media Contacts:		Mike Kelley 913-696-6121 mike.kelley@myyellow.com
		Heather Nauert heather.nauert@myyellow.com
Investor Contact:		Tony Carreño 913-696-6108 investor@myyellow.com

FAQ

What was the recent settlement involving Yellow Corporation (YELL)?

Yellow Corporation settled a civil litigation with the U.S. Department of Defense regarding freight shipment credits from 2005 to 2013.

What are the implications of the Yellow Corporation (YELL) settlement?

The settlement allows Yellow to focus on its operations without the distraction of ongoing litigation, ensuring continued service to its clients.

Did Yellow Corporation (YELL) admit any liability in the settlement?

No, Yellow Corporation admitted no liability in the settlement with the U.S. government.

How long did the litigation involving Yellow Corporation (YELL) last?

The litigation lasted nearly 13 years.

What role does Yellow Corporation (YELL) play for the Department of Defense?

Yellow Corporation serves as a vital partner in the DoD's supply chain, transporting mission-critical goods to military installations.