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FedEx class action lawsuit overview:
- Who: Five plaintiffs have filed a class action lawsuit against FedEx Corp. and other defendants.
- Why: FedEx allegedly conspired with the other defendants to replace odometers on vehicles that had been driven hundreds of thousands of miles so that they could be resold at a premium price.
- Where: The FedEx class action lawsuit was filed in New Jersey federal court.
FedEx Corp. conspired with an automotive group to replace odometers on its fleet delivery vehicles so that it could resell them at artificially inflated prices, according to a class action lawsuit filed June 13 in New Jersey federal court.
A group of five plaintiffs sued FedEx after they purchased the shipping company’s used motor vehicles, claiming they were victims of odometer fraud.
In the FedEx class action lawsuit, the plaintiffs accuse FedEx and other alleged coconspirators of engaging in “the largest odometer fraud scheme in United States automotive industry” by “systematically and surreptitiously” replacing odometers on thousands of used diesel fleet delivery vehicles to dupe car buyers into thinking the vehicles had low mileage.
FedEx class action says odometer fraud costs Americans more than $1 billion annually
The National Highway Traffic Safety Administration (NHTSA) estimates more than 450,000 vehicles are sold with false odometer readings each year, costing Americans more than $1 billion annually, according to the FedEx class action lawsuit.
The plaintiffs note Congress has long recognized odometer fraud as an issue, passing its first law addressing the problem in 1972 and recodifying it in 1994 as the Odometer Act.
In the Odometer Act, Congress recognizes odometer readings are significant to consumers who wish to purchase a vehicle, as they provide an important index of the vehicle’s condition and value.
The Odometer Act specifically states a person may not install a device that alters the odometer of a vehicle so it displays a different mileage than the actual mileage the vehicle was driven.
The plaintiffs claim large shipping services like FedEx and UPS have typically retired their older vehicles once they reached the end of their useful lives. However, FedEx allegedly decided it could create an additional revenue stream by remarketing its fleet vehicles instead of destroying them.
As part of its vehicle remarketing scheme, FedEx and Holman Automotive Group allegedly entered into a mutual agreement to jointly commit odometer fraud, the FedEx class action lawsuit alleges.
The plaintiffs claim FedEx and Holman replaced the odometers on thousands of used FedEx fleet delivery vehicles that had been driven for hundreds of thousands of miles, selling them at a premium price without notifying car buyers the odometer reading did not reflect the vehicles’ true mileage.
They are seeking statutory damages under the Odometer Act of at least $10,000 per violation and other statutory damages, compensatory damages, punitive damages and attorneys’ fees.
In 2021, FedEx was hit with a class action lawsuit alleging it failed to honor its “standard overnight” shipping agreement with customers.
What do you think about the allegations that FedEx odometers do not reflect the vehicles’ true mileage? Tell us your thoughts in the comments.
The plaintiffs are represented by Martin P. Schrama and Stefanie Colella-Walsh of Stark & Stark PC and Matthew R. Mendelsohn and David M. Freeman of Mazie Slater Katz & Freeman LLC
The FedEx odometers class action lawsuit is Gabriel Barrera Almonte, et al. v. FedEx Corp., et al., Case No. 1:23-cv-03224, in the U.S. District Court for the District of New Jersey.
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6 thoughts onFedEx class action alleges company conspired with automotive group to replace odometers
FedEx did not conspire with the Holman group to alter odometers at time of sale. Holman is a remarketing company that handles the sale of large fleet vehicles, worldwide for many large fleets. They are simply and agent selling these vehicles coming out of service for there customers. this eliminates the fleet company from having to add a department to remarket these units coming out of the fleet of these company’s. The fleet company’s are in the business of leasing, renting, or operating their own equipment for the purpose and nature of the industry they are a part of. This includes aircraft, oil field, manufacturing equipment, etc. The plaintiffs in this lawsuit are people that had no business being in business, do not understand the nature of owning and operating equipment, especially 20 year old equipment. The package delivery business has slowed considerably over the last 18 months and the vines are full of sour grapes.
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FedEx straight out doesn’t deliver my goods and lie that they made the attempt I have videos that they never did. I’ve lost thousands of dollars of goods when FedEx tries to deliver them to me.
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