Judge blocks charges against US military supplier

ATLANTA (AP) — A judge says charges should be dropped against a Kuwaiti food company that was accused of swindling the U.S. government in contracts to supply troops in Iraq.

U.S. Magistrate Judge Alan Baverman recommended on Friday that fraud charges against the Public Warehousing Co. not go forward because the indictment had not been properly served. A federal judge must sign off on the move.

Prosecutors then asked to have remaining charges dropped against the company’s U.S.-based subsidiary, Agility DGS Holdings.

Prosecutor Barbara Nelan says investigators are still gathering details on the company’s contracts and she did not rule out a new indictment.

Federal have said the company and its subsidiaries inflated prices and defrauded the U.S. government of at least $68 million.