Legal News

FedEx Faces Lawsuit Over Alleged Violations of Anti-Racketeering Law
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

A lawsuit has been filed against FedEx by PYNQ Logistics Services, a company that FedEx once contracted for package delivery services along the California-Oregon border. The lawsuit, filed on November 14 in a California federal court, accuses FedEx of engaging in a systematic pattern of illegal and wrongful business practices that allegedly violate U.S. anti-racketeering law.

PYNQ’s Legal Challenge

PYNQ Logistics Services seeks a court determination that its relationship with FedEx Ground should be classified as that of an employee rather than a contractor. This distinction is crucial as it allows PYNQ to pursue the case as a class action lawsuit. If successful, the lawsuit could significantly threaten FedEx’s anticipated cost-savings resulting from its ongoing restructuring efforts.

Knowledge is power, and knowing your earning potential is no exception. Check out LawCrossing’s salary surveys to gain valuable insights.

  
What
Where


Potential Impact on FedEx

FedEx has been restructuring its operations, shifting a substantial package volume from its employee-staffed Express unit to its Ground unit, which heavily relies on approximately 6,000 contractors for delivery and transportation services. The outcome of this case may have broader implications for the company’s business model and its ability to continue utilizing contractors in its Ground unit.

Unprecedented Allegations under the RICO Act

Notably, this case marks the first instance where a former FedEx Ground contractor has sued the global delivery giant under the U.S. Racketeer Influenced and Corrupt Organizations Act (RICO). Attorney Jeffrey Possinger, representing PYNQ, emphasizes the unique nature of the legal challenge, characterizing it as an attack on the independent contractor relationship with allegations framed as fraud claims to avoid arbitration.

Response from FedEx

In response to the allegations, FedEx issued a statement expressing its awareness of the lawsuit and its intention to “vigorously defend” against the claims. As of the latest update, FedEx has not filed a formal response in court.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Stay up-to-date without the overwhelming noise. Subscribe to JDJournal for a curated selection of the most relevant legal news.

Concerns and Potential Class Action

Legal experts, including Frank Botta, a former in-house attorney for a company acquired by FedEx, express concerns about the case potentially evolving into a class action. Botta anticipates a protracted legal battle if the lawsuit expands in scope, posing a considerable challenge for FedEx.



PYNQ’s Claims

PYNQ alleges that FedEx violates laws governing contractors by exerting control over service providers equivalent to that over employees. The use of contractors allows FedEx to shift employee expenses and control labor costs, particularly in the context of union organizing efforts.

Specific Allegations by PYNQ

Among the specific claims made by PYNQ, the lawsuit asserts that FedEx knowingly withheld crucial information that would have influenced PYNQ’s decision to become a contractor. Additionally, PYNQ alleges that FedEx hindered its ability to improve profitability and recover its investment by selling delivery areas, citing unfair application of operating policies and procedures that were not adequately disclosed.

Don’t be a silent ninja! Let us know your thoughts in the comment section below.



 

RELEVANT JOBS

Associate Attorney - Litigation

USA-NJ-Moorestown

O’Brien, Belland & Bushinsky is seeking motivated attorneys for multiple associate positions w...

Apply now

Associate

USA-CO-Longmont

Northern Colorado civil litigation firm looking to add additional associate to its fast-paced and gr...

Apply now

Experienced Attorney - Supervising Attorney

USA-SC-Greenville

Overview We are seeking a dedicated and experienced Attorney to join our dynamic legal team. The ...

Apply now

Legal Administrator

USA-NV-Las Vegas

Established Personal Injury Law Firm seeks a Legal Administrator. It is a requirement to have pri...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

SEARCH IN ARCHIVE

To Top