Pubdate: Fri, 15 May 2015 Source: San Diego Union Tribune (CA) Copyright: 2015 Union-Tribune Publishing Co. Contact: http://www.utsandiego.com/ Details: http://www.mapinc.org/media/386 Note: Seldom prints LTEs from outside it's circulation area. FEDEX CAN'T GET OUT OF DRUG CASE Judge rejects claim it can't be liable for shipping contraband FedEx's claim it can't be prosecuted for contraband in its 4 million daily deliveries was rejected by a judge who allowed a case to go ahead over charges it conspired with "rogue" online drugstores to deliver illegal prescription drugs to dealers and addicts. U.S. District Judge Charles Breyer in San Francisco on Thursday rejected the company's bid for dismissal of the case, in which the government may seek almost $1 billion in fines. Breyer said the acts alleged by prosecutors do not fall under an exemption in federal drug law for transportation companies such as FedEx. FedEx had argued that the exemption allowed it and other so-called common carriers to legally possess drugs in the normal course of its business. The Memphis, Tenn.-based shipping giant says it cannot reasonably be expected to police the millions of packages it ships each day. Breyer, however, said FedEx is accused of engaging in a conspiracy to distribute illegal drugs, which isn't covered by the exemption. If that behavior were covered, what would stop a drug dealer from becoming a common carrier to distribute drugs without fear of prosecution, he asked FedEx's attorney. "It's not that it's an uphill battle," the judge said of the argument FedEx was making. "It's an impossible battle." Separately, Breyer ordered the FBI and other agencies to turn over communications that FedEx says show it has long cooperated with the government's crackdown on companies that are shipping drugs without proper prescriptions. As a drug-trafficking and money-laundering case heads toward trial, the parcel-shipping service is trying to show it's being punished after doing the right thing. The company said as far back as 2002, 12 years before it was accused of scheming with "rogue" online drugstores to deliver controlled substances to dealers and addicts, it was assisting federal agencies with investigations of pill purveyors. FedEx helped the government win convictions of the very companies the shipper is accused of conspiring with, defense lawyer Cris Arguedas said in court Thursday. Prosecutors have charged FedEx with multiple drug counts alleging it conspired with two online pharmacies to ship powerful sleep aids, sedatives, painkillers and other drugs to customers it knew lacked valid prescriptions. FedEx has pleaded not guilty. Breyer noted the case was unusual for the government's decision to bring criminal charges. Rival UPS paid $40 million in 2013 to resolve similar allegations that arose from a nearly decade-long crackdown on Internet pharmacies that ship prescription drugs to customers lacking medical clearance. - - BLOOMBERG NEWS & AP - --- MAP posted-by: Jay Bergstrom