An Atlanta-based US magistrate judge has ruled in favour of Agility finding that the Justice Department failed to follow US law in its attempts to serve the company with an indictment.

The US District Court in Atlanta will now decide whether to accept the judge’s ruling or not.

Kuwait-based logistics company Agility was indicted in November 2009 on allegations of overcharging the US army on a multi-billion dollar contract to supply food for troops in Kuwait, Jordan and Iraq.

Agility has welcomed the ruling.

“For seven years it [Agility] has met and passed the requirements of government auditors, inspectors general and oversight authorities. Since learning of this prosecution it has continued to deliver outstanding service for US troops in Iraq and Kuwait,” the firm says in a statement.

Kuwait-based Agility was formerly known as Public Warehousing Company or PWC.

In April, Dubai-based contracting company Anham replaced Agility as the supplier of food and services to the US military in the Gulf (MEED 19:4:10). The US Defense Logistics Agency has extended Agility’s work on the food contract to 4 December.