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December 26, 2012 / Scott Tillett

Delivering Injustice: New Evidence in FedEx Class Action Lawsuit Shows Proof of Overbilling

New evidence recently revealed in the class action lawsuit against FedEx shows proof of overbilling.  According to internal FedEx documents unsealed by the Court, FedEfedex trucksx executives knew of illicit billing practices at FedEx, but failed to remedy the situation. The newly unearthed documents could change the direction of the class action lawsuit against FedEx accusing the mail-delivery giant of overbilling customers.

The lawsuit against FedEx was originally brought in Tennessee federal court by Plaintiff Manjunath Gokare, who alleged that FedEx systematically overcharged customers for millions of packages since 2008.  Gokare alleges that the overcharging was intentional and that FedEx permitted the unlawful surcharges to continue because they were the source of substantial profits for FedEx.  FedEx denied the allegations, stating that the unsealed documents do not tell the entire story.

During the course of the lawsuit, new evidence was discovered supporting the allegations.  A series of internal Fed-Ex emails revealed that senior executives at FedEx knew about the overcharging, but failed to do anything to fix it.  In fact, FedEx executives were notified about the overcharging from a FedEx sales representative, Alan Elam, who became aware of the problem in 2008.  Elam alerted his managing director and the FedEx senior vice president for sales of the illegal surcharges to business clients.  One email states “I have brought this to the attention of many people over the past five or six years, including more than one managing director, and no action has been taken to address it…  My belief is that we are choosing not to fix this issue because it is worth so much money to FedEx.”

Gokare seeks recovery of treble damages on behalf of a nationwide class of FedEx customers as well as an injunction barring FedEx from charging residential surcharges to its business customers.

Have you been the victim of overbilling, overcharging, or other deceptive trade practices?  If so, please call Khorrami, LLP for a confidential consultation.

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