Hagens Berman Sobol Shapiro: Attorneys Seek Consolidation in Lawsuits Against UPS

Last week attorneys from Hagens Berman Sobol Shapiro, in coordination with two other law firms, submitted a motion to combine cases filed against shipping giant UPS (NYSE: UPS) alleging the company routinely uses an inaccurate measurement system that causes thousands of franchise store owners and corporate account holders to be back-charged for higher shipping rates.

The motion would allow three filed cases, one in San Francisco, one in Oregon and the third in Alabama, to combine and could broaden the scope of potential remedies for franchise owners and corporate account holders.

The motion to intervene is on behalf a proposed class of 10,000 UPS Store franchisees, other package shipment centers and over one million account holders.

"We believe joining the actions into one case will be to everyone's benefit," said HBSS managing partner Steve Berman. "The allegations against UPS are being voiced from around the country and narrowing down the legal process to one court could also help speed litigation."

According to the complaint UPS changed its measurement system to use a dimensional weight rate structure after January 1, 2007 which takes into consideration a package's length, width and height. This process first takes place in the store or corporate mailroom and then is checked for accuracy at a UPS hub during the shipping process.

In the complaint, the plaintiffs claim that UPS knew its measuring system was inaccurate and unreliable which resulted in millions of dollars of over-charges. The suit also contends that UPS does not allow store owners to contest or challenge UPS's billing adjustments.

The joint complaint filed by the San Francisco and Oregon plaintiffs on September 24, 2007 claims UPS' actions are in violation of the Racketeer Influenced and Corrupt Organizations (RICO), which awards triple damages to plaintiffs if proven. The RICO claim could also force UPS to change its billing practices -- a remedy which is unavailable in the Alabama action.

UPS uses Multiple Dimension Measurement Devices, manufactured by outside parties to determine the pricing of packages. The suit alleges the company knowingly participated in the scheme to fraudulently measure packages and over charge shippers.

The proposed complaint claims UPS was in full control of the choice of devices and how they determined pricing. UPS chose which machines and software programs to use, directly controlled the manner in which these machines were used, oversaw calibration and regular machine maintenance.

The updated complaint was filed in U.S. District Court in Alabama, and if certified could represent named plaintiffs on behalf of all UPS franchises nationwide, other package and mail shipping outlets, and companies that are account-holders with UPS.

The complaint alleges breach of contract and violations of the RICO Act against UPS.

According to the compliant UPS is one of the most recognized brands in the world and has become the largest package delivery company. The company's focus is enabling commerce worldwide and has grown into a $42.6 billion business since its founding in 1907.

To view the complaint visit http://www.hbsslaw.com.

About Hagens Berman Sobol Shapiro

The law firm of Hagens Berman Sobol Shapiro is based in Seattle with offices in Chicago, Cambridge, Los Angeles, Phoenix and San Francisco. Since the firm's founding in 1993, it has developed a nationally recognized practice in class-action and complex litigation. Among recent successes, HBSS has negotiated a pending $300 million settlement as lead counsel in the DRAM memory antitrust litigation; a $340 million recovery on behalf of Enron employees which is awaiting distribution; a $150 million settlement involving charges of illegally inflated charges for the drug Lupron, and served as co-counsel on the Visa/Mastercard litigation which resulted in a $3 billion settlement, the largest anti-trust settlement to date. HBSS also served as counsel in a $850 million settlement in the Washington Public Power Supply litigation and represented Washington and 12 other states in lawsuits against the tobacco industry that resulted in the largest settlement in the history of litigation. For a complete listing of HBSS cases, visit http://www.hbsslaw.com.
Steve Berman
(206) 623-7292
Hagens Berman Sobol Shapiro