liDUBAI --Kuwait's logistics firm Agility said Monday a U.S. court entered a not guilty plea on its behalf as the company continues talks to settlement a case over allegations it overcharged on about $8.5 billion worth of contracts.
"The court agreed to assign the case for purposes of setting a briefing schedule and entered a plea of 'not guilty' on the company's behalf to allow the case to move forward," Agility said in an emailed statement after the court session.
"The request for a briefing schedule is intended to preserve PWC's rights while the company and the Department of Justice conduct discussions aimed at a resolution of the case."
Agility, which was indicted last year under its previous name, Public Warehousing Co., appeared in an Atlanta court Thursday. The company was indicted Nov. 16 on multiple charges of conspiracy and fraud relating to alleged overcharging of the U.S. Department of Defense over food supply contracts.
Agility, the top food supplier to U.S. troops in Iraq, has denied the allegations, which are centered around three major contracts to supply food to U.S. troops in Iraq, Kuwait and Jordan.
"The court will set a schedule for both sides to file papers so the process can move forward, but no dates have been scheduled at this point," a company spokesperson told Zawya Dow Jones.
"The company would like the court to determine if it has been served properly before entering a plea. The judge therefore entered a plea on the company's behalf so it could set a schedule for future papers to be filed," the spokesperson added.
The company said in December it is in negotiations with the U.S. Department of Justice to resolve the case, adding there are no guarantees the talks would lead to a deal.
Kuwaiti press reports have said Agility could be paying anything from a few hundred million dollars to $3 billion in an out-of-court settlement. Following the indictment, Agility said the U.S. Department of Defense had temporarily halted new contract awards to the company until the legal dispute is resolved, adding the suspension won't affect any current government work undertaken by the Middle East's biggest logistics provide by market value.