Yucaipa, Union Face RICO Suit Over Allied Deal

Law360, New York (April 30, 2007, 12:00 AM EDT) -- Shareholders of bankrupt auto hauler Allied Holdings Inc. have filed a proposed class action accusing Yucaipa Cos. and the International Brotherhood of Teamsters of colluding to give Yucaipa a dominant share of North America’s unionized vehicle transport market.

The lawsuit, which seeks hundreds of millions of dollars in damages, was filed on behalf of Hawk Opportunity Fund LP—which owns 302,000 shares of Allied stock—and the individual retirement account of Allied stockholder Mark Z. Zimmer.

The suit named Yucaipa American Alliance Fund I LP, Yucaipa American Alliance...
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