Litigation Exposes Agility's False Iran Allegations Against KGL

KUWAIT CITY, Aug. 6, 2019 /PRNewswire/ -- Kuwait & Gulf Link Transport Company ("KGL") today announced that it will continue to defend its reputation against false allegations by competitors, following a wide-ranging smear campaign by KGL's competitor Agility using multiple lobbyists and public relations firms in the U.S.

Agility sought to prevent KGL from winning additional U.S. Department of Defense (DOD) contracts after a U.S. federal grand jury criminally indicted Agility in November 2009 for defrauding the U.S. under an $8.5 billion contract to deliver food supplies to U.S. troops in the region.  DOD suspended Agility from receiving federal contracts for over seven years until it agreed to pay a $95 million fine and give up $249 million in claims against DOD in a settlement.

KGL filed a civil suit against Agility after Agility sent letters under a fake name to U.S. government contracting officials in an attempt to incorrectly accuse KGL of violating the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA) and other U.S. laws.  It also attached altered documents to support the false allegations and demanded that the U.S. debar KGL from federal contracting.  Agility formally admitted during the litigation to sending the letters using a fictitious name.  Agility's false allegations that KGL violated U.S. Iran sanctions and other laws continue to be cited by others in an attempt to tarnish KGL's reputation.

A Pennsylvania appeals court ruled in a published decision on Thursday, August 1, 2019, that Agility's effort to harm KGL by sending these letters was not defamatory because Agility's statements were merely "subjective opinions." The court stated that, "[w]hile the author of the … letters may have misunderstood the implication of KGL's ties, the simple expression of opinion (that KGL violated CISADA because of these ties) is not sufficient for an action of defamation, 'no matter how unjustified and unreasonable the opinion may be or how derogatory it is,'" quoting a 1991 ruling in another case. 

KGL respectfully disagrees with the court's decision and is exploring its appeal options.  The company remains steadfast in defending its reputation against Agility's history of making false allegations in order to harm a competitor.

KGL Food Service is now performing the same DOD food distribution services - valued at $1.3 billion - that Agility was providing when it was indicted for illegally overcharging DOD.  KGL, which has never been charged by the U.S. with any wrongdoing, welcomes the opportunity to provide honest services in support of U.S. military operations in the region.

SOURCE Kuwait & Gulf Link Transport Company (KGL)