Wednesday 12 January 2011

US court action hangs heavy over Agility - The National

A perceived lack of transparency continues to haunt Agility, the Kuwaiti logistics firm, as investors struggle to understand where the company stands in its lawsuit with the US government.

The company's stock lost almost 8 per cent in the first trading days of the year, touching a 15-week low, before rebounding this week. Agility closed up 2 per cent yesterday at 495 Kuwaiti fils. The company was reported to be facing a new indictment in the US federal courts over allegations of overcharging for food supplies to the US army. The latest court action follows a criminal case filed in November 2009, when Agility was accused of overcharging the American military over 41 months on US$8.5 billion of contracts first signed at the start of the 2003 invasion of Iraq. Agility was subsequently replaced as the main regional supplier to the US army and was banned from bidding for new contracts while the court case was pending.

But in a statement on the Kuwaiti bourse, Agility said the report about a new civil case against the firm was not true. The matter was a "procedural amendment" to the original case, the company said.

No comments:

Post a Comment