FedEx Appeals Ruling On Late Delivery Class Action

FedEx Express unit expects the U.S. Court of Appeals for the 9th Circuit to rule on its appeal of a class-action judgment in 12 to 18 months, according to a document filed Friday with the Securities and Exchange Commission.The class-action lawsuit was filed in Federal District Court in San Diego against FedEx Express, alleging that customers who had late deliveries during the 1997 Teamsters strike at United Parcel Service Inc.were entitled to a full refund of shipping charges under a money-back guarantee, regardless of whether they gave timely notice of their claim.At the hearing on the plaintiffs’ motion for summary judgment, the court ruled against FedEx Express and ordered a judgment totaling about $68 million, including interest and fees for the plaintiffs’ attorney.The company has denied any liability for this claim, the filing said.Because FedEx Express says it believes the case is without merit and that it will win its appeal, no accrual for the liability has been recorded.Separately, an Illinois state court has granted preliminary approval to a settlement of the Illinois fuel surcharge class-action lawsuit against the company, according to the filing.The lawsuit alleges that FedEx Express imposed a fuel surcharge in a manner not consistent with the terms and conditions of its contracts with customers.Under the proposed settlement, the company would issue coupons to qualifying class members toward the purchase of future FedEx Express shipping services.The coupons would be subject to terms and conditions and would be redeemable for one year after they’re issued.Although the court has granted preliminary approval of the settlement, class members will have an opportunity to object.A hearing to consider any objections and to approve the settlement is expected by the end of December, the filing said.FedEx Express said the cost under the proposed settlement agreement won’t be material.