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Wed 28 Jul 2010 07:38 AM

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Agility's US unit may be dropped from overbilling case

Prosecutors seek to dismiss charges against unit in case against Kuwait logistics firm.

Agility's US unit may be dropped from overbilling case
OVERBILLING CHARGE: Agility was first indicted in November on allegations it overcharged the US government on a multi-billion dollar contract to supply food for troops in Kuwait and Iraq. (Getty Images)

Agility’s US subsidiary may be dropped from a criminal case accusing the Kuwaiti logistics company of overbilling the military after prosecutors sought to dismiss the charges against the unit.

The request pertains only to Agility DGS Holdings Inc and not to any other defendant, federal prosecutors in Atlanta said in a court filing.

The revised indictment filed in February names as the two other defendants the parent company, Public Warehousing Co, or Agility, and its Agility DGS Logistics Services subsidiary.

“This request comes after motions filed by Agility DGS Holdings to discover the government’s evidence against it,” Agility said on Wednesday in an e-mailed statement.

“This case is, at most, a civil contract dispute over the interpretation of a contract drafted by the government.”

Assistant US Attorney Barbara Nelan didn’t immediately return a call to her office after regular business hours.

The company was first indicted in November on allegations it overcharged the US government on a multi-billion dollar contract to supply food for troops in Kuwait and Iraq.

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