FedEx Settles Class Action Alleging $5M In Bogus Surcharges

Law360, Los Angeles (July 9, 2013, 4:10 PM EDT) -- Federal Express Corp. has settled a class action in Tennessee federal court alleging it committed mail and wire fraud and breached its contract with customers by charging more than $5 million in bogus residential delivery surcharges for packages sent to businesses and government buildings, party representatives said Tuesday.

The suit alleged that the shipping giant violated the federal Racketeer Influenced and Corrupt Organizations Act and breached its contract with customers by intentionally applying the charges to locations that couriers knew were nonresidences. The class covers all...
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