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FedEx Billing Fraud Class Action Lawsuit
By Kimberly Mirando

FedExA federal class action lawsuit claims FedEx cheats customers out of millions, if not billions, of dollars in overcharges by “upweighting” packages and engaging in other corrupt billing methods.


The lead plaintiff in the FedEx class action lawsuit, NYBikerGear, claims FedEx cheats customers in three ways: though “upweighting,” through a “Canadian Customs scam,” and by failing to apply discounts properly.


“In the ‘upweighting’ scam, the defendants have manipulated their information technology so that it rates small packages at a fictional higher weight than the actual package weight,” says the FedEx class action. “The higher weight, in turn, automatically results in the assessment of higher rates and surcharges for these packages.” 


“In the ‘Canadian Customs scam,’ the defendants have billed their customers for Canadian Customs duties and related charges on FedEx Ground shipments from the United States to Canada. The defendants knew such charges were to be paid by the Canadian recipients but instead misrepresented to customers that such charges could not be collected from the recipients.”


Finally, the class action lawsuit claims that FedEx does not abide by its pricing agreements, which give customers discounts when they ship packages with a FedEx billing number. A class action lawsuit filed in February accuses the transportation company of overcharging customers for residential deliveries.


This is not the first time FedEx has faced a class action lawsuit for allegedly cheating customers. The shipping company was hit with a class action lawsuit in February for overcharging customers who ship to residential addresses.


The FedEx RICO class action lawsuit is seeking declaratory judgment, an injunction, costs and treble damages for RICO fraud. 


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Updated March 18th, 2011


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