Recent News and Updates
Court of Appeals Rules in Favor of Activist Route Consultant and Against FedEx Ground
On April 1, 2024, the Court of Appeals for the Sixth Circuit affirmed the District Court’s ruling, denying FedEx Ground’s claims that Route Consultant Inc. have published false or misleading statements about FedEx Ground (“FXG”) Route Consultant Inc. provides consultancy and brokerage services that are led by Spencer Patton, who was also a contractor for FedEx Ground, who owned several independent services providers (“ISPs”) with FXG. In August 2022, Route Consultant Inc. went on a promotional campaign, in which Patton criticized FedEx Ground, among others, for not addressing the fuel and wages prices increased. This, according to Patton, results in the struggle of many FedEx Ground contractors, who are small business owners that struggle due to the price increase. FedEx Ground claimed that Route Consultant made false or misleading statements during its campaign and that the campaign premised on a “fictionalized crisis” between FedEx Ground and its network of contracted service providers. The Court of Appeals agreed with the District Court that FXG failed to plausibly allege that Route Consultant made a single false or misleading statement. This is one of the cases that Possinger Law Group is currently following closely, and the ruling is significant. It is definitely a case to watch. For more information about this case: PR Newswire: Route Consultant Prevails in Logistics Legal Battle With FedEx Ground: Court of Appeals Decision United States Court of Appeals Decision Please Note: Possinger Law Group PLLC did not represent any of the parties involved in the above case. Possinger Law Group is a boutique law firm dedicated to elite levels of service to small and medium sized businesses and the individuals that own them. Possinger Law Group has been legal counsel for FedEx Ground contractors and advised law firms representing contractors against FedEx Ground. When faced with serious problems, clients have reached out to Possinger Law Group to be a trusted advisor and advocate to be a guide through high conflict situations and complex legal challenges. In litigation matters, Possinger Law Group works with its clients to effectively resolve disputes, and when necessary, by being fiercely aggressive in litigation.
NY FedEx Contractor Declares Second Bankruptcy in Seven Months
CBS Trucking Inc., of Newburgh, NY, filed a Chapter 11 Petition in U.S. Bankruptcy Court, Poughkeepsie on February 7, 2024. This comes shortly after CBS initially filed for Chapter 11 bankruptcy protection in June 2023. CBS intention in its petition is to successfully reorganize its debts and emerge as a profitable residential package delivery service. According to CBS, it experienced a decrease in revenue after it lost one of its FedEx contracts in 2021. This resulted in a default on a $1,163,000 loan issued in 2020 and backed by the U.S. Small Business Administration. It is not uncommon for FedEx Ground contractors to face severe financial consequences in connection with their business relationship with FedEx Ground. FedEx contractors are advised to seek competent and knowledgeable legal representation to guide them in any legal dispute with FedEx Ground. For more information about this case: Westfair Business Journal: Newburgh FedEx contractor declares bankruptcy again Please Note: Possinger Law Group PLLC did not represent any of the parties involved in the above case. Possinger Law Group is a boutique law firm dedicated to elite levels of service to small and medium sized businesses and the individuals that own them. Possinger Law Group has been legal counsel for FedEx Ground contractors and advised law firms representing contractors against FedEx Ground. When faced with serious problems, clients have reached out to Possinger Law Group to be a trusted advisor and advocate to be a guide through high conflict situations and complex legal challenges. In litigation matters, Possinger Law Group works with its clients to effectively resolve disputes, and when necessary, by being fiercely aggressive in litigation.