Kuwait Agility Seeks $225M In Damages From US Defense Logistics Agency

Tuesday, Apr 24, 2012

BEIRUT (Zawya Dow Jones)--Kuwait-based Agility (AGLTY.KW), the biggest logistics firm by market value in the Persian Gulf, said Tuesday it has filed a claim against the U.S. Defense Logistics Agency, or DLA, seeking damages of $225 million for alleged breach of contract.

The company formerly known as Public Warehousing Co. said in a statement on the Dubai bourse website that the claim was filed at the U.S. Armed Services Board of Contract Appeals.

"United States government officials employed by DLA and the Department of Justice, or DOJ, conspired and acted in concert to intentionally deprive Agility of its rights under the second prime vendor contract, or PV2 contract, breaching the contract's express and implied terms and violating regulatory duties," the statement said.

Agility's claim includes interest due and $158.9 million of unpaid distribution fees, according to the statement.

The Dubai and Kuwait-listed firm has been embroiled in litigation with the U.S Army for years due to its alleged over pricing of supplies to U.S. forces in Iraq and Kuwait.

Agility shares didn't trade early Tuesday. They last traded Monday at KWD0.41.

By Shikrallah Nakhoul, Zawya Dow Jones, +961 1 985757, shikrallah@zawya.com

(END) Dow Jones Newswires

24-04-12 0644GMT