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FedEx Corporation (NYSE:FDX) exposed in overbilling case- says rival United Parcel Service, Inc (NYSE:UPS) will profit – BAC

Boston, MA 04/03/2013 (wallstreetpr) – Two different lawsuit firms have filed independent suits against FedEx Corporation (NYSE:FDX) (Current: $97.34, Up by 0.23%). The charges are that that the courier company has been knowingly and intentionally over-billing its customers for the commercial deliveries carried out by them. U.S. Magistrate Judge Charmiane Claxton passed the ruling in Memphis, Tennessee. The lawsuits had claimed that the rates that the company was overcharging for deliveries that had been very obviously made to commercial recipients. This suit could get the plaintiffs millions of dollars worth or compensation.

Company has right to object
The Memphis-based FedEx Corporation (NYSE:FDX) will be given the opportunity to object the ruling said Claxton. U.S. District Judge John T. Fowlkes is overseeing the lawsuit and Claxton will be signing a written order which will be forwarded to him. In some earlier orders Claxton had said that the company did not have the authority to seal any material that it considered to be damaging to its reputation. Confidential matter can however, be sealed. Fedex has denied all allegations and said that its customers are free to go ahead and challenge the charges. Justin Ross the company attorney said that Fedex had only one major rival, United Parcel Service, Inc (NYSE:UPS) (current: $83.58, Down by 0.46%) and that any kind of disclosure could harm the former.

Evidence will be known
Ross said that any little piece of information that rivals eke out can be used to their advantage but the judge averred that once there is a trial, the evidence is bound to come into the open at one point or the other. The internal FedEx Corporation (NYSE:FDX) documents themselves prove that the company has known for several years that its units have been levying excessive residential surcharges. In most cases these excess charges have amounted to $3 per package and thousands of such packages are delivered to various destinations within America including the Florida-based Bank of America Corp (NYSE:BAC) (Steady at: $12.15) and Chicago’s U.S. Citizenship and Immigration Office.

The U.S has stringent racketeering laws and under these the damages could easily triple. In December, FedEx Corporation (NYSE:FDX) had asked the court to dismiss the racketeering charges saying that if the plaintiffs were of the opinion that there was an inappropriate charge on deliveries, the contact has provisions via which those charges can be contested.

Published by Nicholas Maithya

Nicholas is a Financial Analyst by profession, who enjoys writing about investments, technological developments, business, economics and other financial topics at various financial publications. Join him here on Wallstreetpr.com as he endeavors to deliver to you the latest breaking news on the above mentioned fronts. Contact him by email at [email protected] or follow Nicholas Kitonyi @nmaithyak on Twitter.

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