The United States Justice Department has charged FedEx Corp with conspiracy to deliver or distribute painkillers and other prescription drugs sold illegally by unregistered pharmacies.

Federal authorities said FedEx assisted illegal pharmacies from 2000 to 2010 by knowingly shipping drugs, including sleeping aid Ambien, anti-anxiety drugs Valium and Xanax, to customers even without prescription.

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The filing of charges last Thursday came after a two-year investigation that started in 2012, when FedEx denied any wrongdoing and vowed to fight any charges that may be filed by the Justice Department.

It was in November 2012 when FedEx first disclosed in a regulatory filing that it was subjected to a federal investigation.

Federal prosecutors, in a 15-count indictment filed in a court in San Francisco, said the government had repeatedly warned FedEx since 2004 that it was breaking the law by shipping prescription drugs ordered online even if the buyers did not have prescription.

Among the charges filed against FedEx are the conspiracy to ship controlled drugs, conspiracy to distribute illegally branded drugs, misbranding drugs, and distribution of controlled drugs.

FedEx allegedly made around US$820 million for shipping the drugs, federal prosecutors claimed.

The US attorney's office in California said FedEx could face a fine of at least US$1.6 billion if found guilty of the charges. The penalty also includes forfeiture of profits, among others.

On Thursday, FedEx said it will plead not guilty to all charges and will defend its integrity and good name in court.

FedEx Senior Vice President of Marketing and Communications Patrick Fitzgerald said in a statement that the company will defend itself against the attack but assured close cooperation with law enforcement.

TagsFedEx, FedEx Case, FedEx Illegal Drugs