The Complex Litigation Group LLC has filed a potential class action lawsuit against the United Parcel Service.
The law firm is accusing UPS of “systematically overcharging customers” for the first $100 of declared value coverage.
Officials with the Atlanta-based shipping giant refute the claims.
“The UPS rate and service guide is in accordance with other carriers. As to these type of charges, Fed Ex and DHL, for example, assess declared value charges in the same way,” says UPS spokesman Dean Foust.An audio version of this story.
The law firm says it is seeking damages for everyone who paid additional charges to UPS for loss or damage.
They are also accusing UPS of racketeering violations.
“They are basically alleging that UPS has committed wire and mail fraud by making these charges. If the court allows this to proceed as a class action, you’re talking about a lot of money,” says WABE legal analyst Page Pate.
According to Pate, these types of lawsuits against large corporations are common and often resolved with a settlement.
Foust says the carrier will seek dismissal of this matter as soon as possible.