Big Brown Settles Class Action Involving Alleged Shipping Overcharges to Businesses

According to the Class Action Reporter, United Parcel Service, Inc. UPS), has settled a class action lawsuit involving packages delivered to commercial locations within the United States from the period January 1, 1998, to May 6, 2008.

The lawsuit claimed that UPS incorrectly charged residential rates, which are higher than commercial rates, for shipping packages to commercial locations.  The settlement requires UPS to issue $4 million in credit to eligible "Contract Settlement Class Members" and an additional $2.25 million in vouchers.  The two settlement classes are defined as follows:

A. Contract Settlement Class

   All shippers in the United States who tendered a packaged to
   UPS for delivery to a location in the U.S. from Jan. 1, 1998,
   to May 6, 2008, where the shipper was assessed a Residential
   Surcharge or a Residential Adjustment in connection with the
   delivery.

B. Declaratory Relief Settlement Class

   All shippers in the U.S. who tendered a package to UPS for
   delivery between Jan. 7, 2002, and August 14, 2005.  Excluded
   from the Settlement Classes are members of the judiciary,
   UPS, UPS employees, and any of UPS's parents, subsidiaries,
   or affiliates, and their officers, directors, and the members
   of their immediate family.

Class members will have until July 25, 2008, to object to the settlement, and until July 29, 2008, to opt out of the settlement.  Affected class members will have until February 9, 2009, to submit a claim form.  More information regarding the settlement is available at the UPS settlement web site: http://www.noticeclass.com/upssettlement.