FedEx Ground Lawsuit – How Class Actions Can Recover Damages

FedEx Ground lawsuit history update. Recently, the New York State Attorney General and FedEx Ground Service, Inc. have entered into a settlement of a lawsuit by the New York Attorney General charging that FedEx ground operations in New York have illegally enriched their bottom line through an unfair business practice. these charges is the latest example of how the company has been stung in recent years.

The Attorney General found that FedEx repeatedly overcharged customers for services beyond their delivery ability, while failing to reimburse customers for the additional charges they incurred when using FedEx delivery facilities. Also, FedEx repeatedly neglected to make reasonable accommodations for their disabled and elderly customers.

FedEx Ground Lawsuit

This would be news, however, if it were not for the fact that this particular case goes to trial. If FedEx prevails in this lawsuit, the company will be facing a class-action lawsuit, as well as numerous complaints from various co-owners and former employee who were injured while on the job. Also, there are currently two class-action lawsuits underway in which UPS and DHL are seeking damages.

The reason why the Attorney General decided to sue FedEx Ground, Inc.

(the parent company for FedEx Express) was because they say that they have strong evidence that the company engaged in a “pattern of negligence.” This is basically an accusation that the company abused its power and position as a monopoly by denying goods and services to individual customers in areas where it had a legitimate monopoly and instead favoring its own products in a bid to increase its power and profits.

According to the complaint, this conduct caused injuries to customers who utilized FedEx trucks in areas where it did not have a regular distribution channel. Also, due to the power and profits that FedEx derives from owning its own trucks, it is likely that the corporation will attempt to monopolize other delivery activities, thus increasing its power and profits even further. Such conduct may not just be illegal but could constitute a violation of the Administrative Procedure Act (APA).

If FedEx prevails in this lawsuit, it will be forced to open up its books of business to all forms of commerce.

This is a direct violation of the Fifth Amendment to the U.S. Constitution, as well as the Anti-Trust Laws, and the provisions of the Office of the Fair Trading Act (OFTA). Such violations can result in serious financial losses for corporations and their owners and should not be tolerated by any company with any type of public profile. As such, any company that violates the law or tries to intimidate individuals into settling their lawsuits, should immediately be put in a receivership proceeding by a competent court. (This is a common practice in class actions.)

According to the complaint, FedEx Ground Nation shipments involve “unvised and inadvertent classification as independent contractors by the Company.”

This meant that whenever a truck driver was compensated for services he performed for FedEx, he did not have to disclose that fact to the person or company that he was shipping for. Subsequently, he received a percentage of the sales for those goods, even if they were not shipped on a FedEx plane. Such conduct violated Pennsylvania and 19 other states’ laws against non-disclosure of liabilities, or misrepresentation of material facts, which is a key element of any successful lawsuit settlement.

The complaint further claims that FedEx has “aggressively pursued its aggressive marketing strategy, using tactics that are deceptive and unfair.”

Such conduct, according to the complaint, has caused substantial harm to plaintiffs’ rights. The complaint seeks to recover damages for injuries sustained while driving for FedEx, among other things.

Plaintiffs have also asked the court to award punitive damages to cover costs and losses that have resulted from FedEx’s advertising and marketing practices, among other damages. If the court agrees with plaintiffs, it will be able to award class actions to compensate drivers in various states.

1 Comment
  1. How can we join this class-action lawsuit? I recently lost more than $1000 due to FedEx destroying my product and failing to deliver to the end customer.

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