Lawsuit against UPS certified as class-action

The suit was brought by former Mail Boxes Etc. franchisees who claim that UPS misled them into believing that the UPS Store model would be more profitable.

Atlanta-based UPS acquired Mail Boxes Etc. in 2001 for about USD 192 million, and the majority of Mail Boxes stores changed their names to The UPS Store, while the UPS subsidiary that oversees the stores has retained the Mail Boxes Etc. name. It is based in San Diego.

All new U.S. franchisees after 2003 were branded The UPS Store.

The former Mail Boxes Etc. franchisees formed a group called the Platinum Shield Association in 2003 to pursue litigation in opposition to the UPS takeover.

Their suit, which was filed in April 2003, now has been certified as class-action by a California appeals court, according to a news release from the Platinum Shield Association.

The appeals court ruled that the Superior Court of California in Los Angeles was wrong in denying a motion to certify a class action in the case.

The plaintiffs are represented by Howard Spanier, a Malibu franchisee who is president of the association.

The suit seeks rescission of the conversion to the UPS store model and unspecified monetary damages, the release said.

Officials with UPS could not immediately be reached for comment.