A U.S. Magistrate Judge in Atlanta ruled in favor of The Public Warehousing Company KSC (Agility), finding that the Justice Department failed to follow U.S. law in its attempts to serve the company with a summons and indictment.

The Justice Department “has failed to show that it served the summonses or indictments” on Agility, the Magistrate Judge concluded in a report and recommendation issued Thursday. The Magistrate Judge also rejected the Justice Department’s claim that Agility is a “fugitive,” concluding that Agility “is not a fugitive.”

The Magistrate Judge’s ruling serves as a recommendation to the U.S. District Court in Atlanta, which must decide whether or not to accept it.

In asking the court to rule on the issue of “service of process,” Agility asserted a right extended to all litigants under the U.S. Constitution. In his ruling on Thursday, the Magistrate Judge called the company’s decision to assert its due process rights “legitimate” and a “valid response” to the Justice Department’s conduct in the case.
Agility welcomes the ruling.

Separately, the U.S. Magistrate Judge indicated he is inclined to accept a Justice Department motion to dismiss the indictment against Agility DGS Holdings Inc., a U.S. subsidiary of Agility.

Agility stands by its work on the Prime Vendor food contract. For seven years, it has met and passed the requirements of government auditors, inspectors general and oversight authorities. Since learning of this prosecution, it has continued to deliver outstanding service for U.S. troops in Iraq and Kuwait and superior value to taxpayers. Recently, the U.S. Defense Logistics Agency extended Agility’s work on the food contract until Dec. 4.

The company continues to believe this case involves a civil contract dispute and should not be a criminal matter. Agility’s prices, suppliers and business practices were disclosed to, approved and routinely reviewed by its U.S. government customer.

Agility remains committed to trying to resolve the dispute through dialogue with the Justice Department but is prepared to defend itself vigorously if that dialogue is not fruitful.