If FedEx is found guilty, it faces a potential maximum fine of twice the gains from shipments by pharmacies, which is estimated to be around $820 million, meaning a total fine of $1.6 billion. This amounts to 46.4% of FedEx’s operating profits for the fiscal year 2014 and therefore raises concerns about the company’s ability to pay-off and recover from such a hefty fine. It also brings into question how the company will meet its short-term liabilities and pay dividends to its shareholders.
Source: Markets