FedEx settles overbilling class action

Posted on: August 13th, 2013 by Steve Larson

Fotolia TruckFedEx Corporation, the global delivery services company headquartered in Memphis, Tennessee, settled a lawsuit involving allegations that it overbilled for deliveries to business and government offices by charging higher priced residential delivery rates.  The lawsuit accuses FedEx of using an inaccurate database which wrongly coded business and government locations as residential which resulted in surcharges totaling as much as $3 or more per package.  Plaintiffs also asserted that FedEx improperly assessed the surcharge even though its drivers were aware that the destination addresses were not residential.   

A preliminary approval hearing was set for July 23 by a Memphis federal court judge.