Board of Yellow, Formerly YRC, Sued for Alleged Covid Scheme (1)

Two Yellow Corp. shareholders sued its board in Delaware, claiming its members oversaw a fraudulent scheme to overcharge customers for freight cargo, then courted scandal by seeking a $700 million government bailout justified by potentially bogus coronavirus concerns.

The bailout, which “made the company one of the largest recipients of taxpayer money meant to support businesses and workers struggling amid the coronavirus,” has now “come under scrutiny from” Congress, which is investigating whether it “was really worthy of a rescue,” the complaint says.

The Treasury Department last year approved a rescue for the shipping business, which was known YRC ...