Abraham Simmons, a spokesman for U.S. Attorney Melinda Haag in San Francisco, declined before the hearing to comment on the case. FedEx and its alleged co-conspirators could be fined twice the gains from the illegal conduct, alleged to be at least $820 million. The Memphis-based company and individuals who ran the illicit pharmacies "knowingly and intentionally" schemed to launder more than $630,000 in shipping payments that were derived from drug sales, according to a revised indictment in August. United Parcel Service Inc. agreed in 2013 to forfeit $40 million in payments from illicit online pharmacies under a non-prosecution agreement with the U.S. Justice Department. Walgreen Co. and CVS Caremark Corp. have paid a total of more than $150 million in civil fines over claims they sold medications knowing they weren't for legitimate medical use. FedEx has said "settlement is not an option" in the case. Cote said the company appears willing to fight the charges at trial, which is set for February.