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FINANCIAL NEWS
US court dismisses case against Agility unit
10 Oct 2010
(MENAFN) A US magistrate judge has recommended the dismissal of a case against a US subsidiary of Kuwait’s Agility, which is accused by prosecutors of fraud over multibillion dollar contracts with the US Army, Bloomberg reported.
The decision to drop the case against Agility DGS Holdings Inc was expected and is unlikely to stop prosecutors from pursuing a main case against the parent company, Agility, formerly the Public Warehousing Co KSC, according to observers who have followed the case.
The decision is part of pretrial motions that have followed an indictment of Agility last November for attempts to defraud the U.S. military over supply contracts in a case that is politically sensitive in both the United States and Kuwait.
Agility overcharged the U.S. Army over 41 months on $8.5 billion in contracts first signed at the start of the Gulf War in 2003, according to the indictment.
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