Pitney Bowes Pays $9.4 Million For Improper Postage Discounts

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The settlement related to a subsidiary of Pitney Bowes that underpaid postage that went through a USPS processing facility in Reading, Pennsylvania.

U.S. Postal Service mail submitted for discounted postage rates must comply with Move Update, a change-of-address standard that requires either the company or its customers update recipient addresses in order to qualify for discounted postage.

Mail fraud related to postage like this one can be brought to the attention of the U.S. Government and the Post Office through the False Claims Act. The FCA entitles the whistleblower to between 15 and 30 percent of the conditions and eligibility requirements of the law are met.

There was no mention of a whistleblower involved in the case behind the settlement announcement today. However, there have been cases in the past with allegations similar to the one that emerged today. In fact, Pitney Bowes a number of years ago had one of them filed and settled against it.

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