Class action against UPS for improperly measured packages settled

Posted on: November 7th, 2011 by Steve Larson

UPS agreed to pay $12 million to settle a lawsuit claiming they overcharged for shipping packages.

The class representative, Barber Auto Sales, will receive $10,000 in the settlement.  Barber Auto Sales filed suit in federal court in Alabama in 2006 claiming that it had overpaid UPS more than $4,600 in shipping charges.  The settlement allows anyone who shipped a package between May 15, 2006 and August 29, 2011 to file a claim if they had to pay additional charges because of the way UPS measured the size of packages.

UPS, which claimed no wrongdoing, has agreed to pay $4 million in legal fees, set aside $2 million in a settlement account, and establish a $10 million account for credits and future refunds.

A final approval hearing will be held in federal court in Birmingham on December 5.