Below is the first part of an article by Zach Warren from InsideCounsel.com It reads…
Between 2008 and 2011, FedEx Corp. allegedly overcharged nearly half-a-million business customers for shipping, adding higher residential surcharges to their fees. But now, with the settlement of a three-year-old class action lawsuit, it’s FedEx who will need to pay in the end.
On Nov. 22, a federal judge approved a FedEx payment of $16.5 million to settle the class action lawsuit, refunding roughly 475,000 government and business customers. Over the course of three years, FedEx allegedly charged as much as $3 a shipment more than normal shipping costs despite telling customers that they were receiving a reduced business rate.
FedEx and the lawyers from the class action suit, which was brought by law firms Manjunath A. Gokare PC and Goldstein, Borgen, Dardarian & Ho, originally agreed to a settlement in July, pending court approval. Through the terms of the settlement, FedEx admits no guilt. The company does, however, likely face an additional $5 million in fees related to the case, the estimated cost for correcting inaccurate internal databases and changing internal policy procedures to ensure a repeat does not occur.
Marc Primo Pulisci is a Los Angeles based attorney practicing with Initiative Legal Group. Marc Primo Pulisci has been practicing law for over 10 years. Find Marc on Marc Primo Twitter, Marc Primo Manta, Marc Primo Facebook, Marc Primo Squarespace, Marc Primo Dot Com