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FedEx to Pay $21.5 Million in Overcharging Class Action Settlement


This is a settlement for the lawsuit.

New York , NY: A $21.5 million settlement has been granted final approval in a consumer fraud class action pending against FedEx Corp. The lawsuit, brought in 2011 by two law firms, alleged the world' largest cargo delivery company overcharged by as much as $3 per package for tens of thousands of packages.

The plaintiffs, made up of government and business customers, claimed FedEx charged residential rates to destinations including the US Citizenship and Immigration Office in Chicago, a Bank of America Corp. facility in Tampa, Florida, and the Safariland Group body armor company in Jacksonville, Florida.

FedEx has denied the allegations but has agreed to settle. The settlement was preliminarily settled in July. The court approved settlement breaks down as $16.5 million in cash and billing-practice changes worth an estimated $5 million.

The class period is from August 28, 2008, to July 13, 2011, and involves FedEx customers who used the carrier' services and didn't get a full refund for claimed overcharges on residential deliveries.

The case is Manjunath A. Gokare PC v. Federal Express Corp., 11-cv-02131, U.S. District Court, Western District of Tennessee (Memphis).

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Published on Nov-29-13


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