Law360, New York September 10, 2014, 4:58 PM ET — A Virginia federal judge has agreed to dismiss a False Claims Act suit accusing Northrop Grumman Systems Corp. of misleading the U.S. Postal Service and failing to meet benchmarks in delivering mail-sorting machines worth $874 million.U.S. Judge T. S. Ellis III agreed with Northrop’s memorandum that no evidence exists that the company made false statements or omitted material facts, had any intention to mislead the federal government or caused the USPS to pay improper or false invoices.
While the USPS is working with industry representatives through MTAC on flats preparation and entry issues, what seems to have been missing is an over-arching flats strategy that looks at how the products are priced, a detailed analysis of the costs associated with flats products and a plan to reduce them, and how the USPS and industry can work together to grow flats volumes and generate new revenue.
Recently, however, industry representatives have become more optimistic that the USPS is finally understanding the need to formulate and communicate an overall flats strategy and take aggressive steps to incent and reward more efficient flats mail preparation.
A joint USPS/industry group formed earlier this year has made significant strides in moving in the right direction.
Read more (.pdf file): Postcom: Into the Postal Weeds.