Commercial customers of FedEx Ground Package System Inc., or FedEx Ground, have been and may continue to be subjected to overcharges, costing them, accumulatively, anywhere from millions to billions of dollars. Parker Waichman LLP continues to investigate allegations that are part of the class action lawsuit the firm has filed against FedEx Ground and two related FedEx companies.
FedEx Ground is known for its streamlined and efficient transportation model that utilizes an information technology system that enables it to adroitly process some 3.5 million packages daily (nationwide delivery is available, including overnight and second-day service). At the same time, the billing model in use can termed as convoluted and fraudulent. FedEx Corp. and FedEx Corporate Services Inc. established both the transportation model and the billing model, that latter of which allegedly has been used to both facilitate and conceal the covert billing overcharges previously mentioned.
‘Upweighting’ and Erroneous Billing for Deliveries to Canada Alleges Class Action Lawsuit
The allegations against FedEx Ground are two-fold, one involving the inflated weighing (“upweighting”) of packages for delivery; the other, the billing of U.S.-based customers for deliveries to Canada when the U.S. customer had expressly said Canadian-related expenses should be charged to the Canadian recipient.
The first portion of the complaint alleges that FedEx Ground is “Upweighting” – using their information technology system in such a way that it falsely rates packages at higher weights than the packages actually are. Of course, the more a package weighs, the larger the related rates and surcharges.
The complaint further alleges that FedEx has billed U.S. customers for Canadian customs/duties and related charges on shipments from the United States to Canada. The defendants were aware that the customer had asked that such charges were to be billed to the Canadian recipients, but instead told their U.S. customers that the Canadian-related charges could not be collected from the recipients for some reason.
FedEx Class Action Lawsuit Involves Two Classes
The class action lawsuit against FedEx Corp., FedEx Corporate Services Inc. and FedEx Ground has been filed on behalf of all persons and/or entities that paid fraudulent charges to FedEx Ground, going back to the year 2007 through the present, either due to the practice of overweighting or Canadian customs/duties and related charges.