SAN FRANCISCO (CN) – FedEx pleaded not guilty Wednesday to federal charges of distributing prescription drugs for illegal Internet pharmacies and conspiring to launder money.
The shipping giant faces 18 felony charges and a penalty of up to $820 million for its alleged role in delivering drugs like Ambien, Xanax and Clonazepam to drug dealers and addicts.
Prosecutors say the company was warned at least six times since 2004 that illegal pharmacies were shipping controlled substances to customers without doctors’ prescriptions.
FedEx was indicted in July on 15 charges of distributing controlled and misbranded drugs and conspiracy. An August superseding indictment added three additional charges of conspiring to launder money.
Representatives from FedEx declined to comment after the arraignment.
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