Dear Investor,
Agility Public Warehousing Company K.S.C.P. (“Agility”) received notice of a claim filed against it in the United States District Court for the Central District of California. The claim was filed under seal by a former employee, John Lee Miller, under the U.S. False Claims Act.
In his claim, Miller alleges that Agility violated the False Claim Act (FCA) employing a faulty accounting methodology to calculate indirect costs thus overcharging the U.S. Government under three historic government contracts for an aggregate amount of approximately KD 19 million. Relator’s counsel has informed Agility that Relator intends to drop from his complaint the KD 12 million overcharge allegation, thereby reducing his claims to approximately KD 7.5 million. The claims are unrelated to the Prime Vendor contract litigation, which was settled in its entirety in May 2017.
Agility believes that the service of process is invalid and that Miller’s claims are entirely frivolous. Furthermore, the United States Government has declined to intervene in Miller’s complaint.
Sincerely,
Investor Relations Department
Agility Public Warehousing Company