UPS Pays $40 Million to End Illegal Drug Shipment Probe

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United Parcel Service Inc. agreed to forfeit $40 million to settle a federal probe into shipments for illegal online pharmacies, admitting the company had information it was helping distribute controlled substances.

UPS signed a non-prosecution agreement with the U.S. that requires it to set up a compliance program to prevent illegal Internet pharmacies from using its shipping services, according to a copy of the deal released today by the Justice Department. The accord, which requires cooperation with the Drug Enforcement Administration, will remain in effect for two years.