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FedEx Sued for Civil Racketeering

A recent lawsuit accuses FedEx of systematically overcharging business and governmental customers on a wide scale. The class action lawsuit claims that FedEx charged the higher residential rate for packages that were being sent to many businesses and governmental offices at the higher residential rate. The suit alleges that FedEx overcharged these customers by as much as $3 per package, with millions of packages having been overcharged. Many of these charges were made for delivery to addresses that were obviously not residential addresses including banks, courthouses, and governmental offices. It is alleged that FedEx even charged the residential rates to packages sent to its own corporate offices.

In discovery, internal emails have been produced showing that corporate officers knew of this problem and did nothing about it. Many of the emails, from mid-level managers to the upper-level management of the company, detail the extent and seriousness of the problem well before this lawsuit was brought. The emails suggest that the company has been knowingly overcharging its customers for many years, but no one at the company attempted to fix the problem going forward or to provide refunds to anyone who was overcharged. As one internal email from a manager at FedEx states “My belief is that we are choosing not to fix this issue because it is worth so much money to FedEx”.

Because of the nature of these emails and the charges, the plaintiffs in this lawsuit are seeking treble damages under civil racketeering laws, RICO. The plaintiffs believe that these emails show that not only was FedEx overcharging customers, it was intentionally doing so.

If you or someone you know has been a victim of deceptive trade practices, contact the attorneys at Abraham, Watkins, Nichols, Agosto, Aziz & Stogner by calling 713-396-3964 or 800-594-4884.

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