PYNQ v. FedEx Ground

Background of Lawsuit

PYNQ Logistics Services, Inc. v. FedEx Ground Package Systems, Inc.

United States District Court (Northern District of California)

Case: 4:23-cv-05881

The Plaintiff, PYNQ Logistics Systems, Inc. (“PYNQ”) is a women-minority owned small business that was contracted with FedEx Ground to deliver packages in rural coastal communities near the California-Oregon working out of FedEx Ground’s Arcata, California and Brookings, Oregon Stations. The complaint alleges that PYNQ lost its business as a result of unfair treatment and deceptive practices that are widespread and embedded throughout the delivery giant’s business model, according to a lawsuit filed in the U.S. District Court for the Northern District of California on November 14, 2023.

The complaint also alleges that FedEx Ground’s conduct rises to a level that the Federal Racketeer Influenced and Corrupt Organizations Act (“RICO”) applies, along with allegations of violating California’s Unfair Competition Law, fraud, and negligent misrepresentation, among others. The lawsuit was filed by Possinger Law Group, PLLC of Woodinville, WA and Berman North, LLP, San Francisco, CA.

This groundbreaking case, brining Civil RICO claims against FedEx, which conducts its “last mile” of package and delivery services through a fleet of more than 100,000 vehicles owned or leased by a network of small businesses that FedEx Ground calls “Independent Service Providers” (“ISPs”) caught the attention of both the media and other FedEx Contractors around the United States.

Updates on Lawsuit

  •  Case Filed: PYNQ files Complaint for Fraud, Concealment, and False Promise, Negligent Misrepresentation; Tortious Interference with Business Relations, Racketeer Influenced and Corrupt Organization Act (“RICO”) 18 USC ss 1961, Et. Seq. and California Unfair Competition Law. (November 14, 2023) Read Here: (Download PDF)
  • FedEx Files Motion to Compel Arbitration (February 23, 2024) Read Here: (Download PDF)
  • PYNQ Files Amended Complaint. (March 1, 2024) Read Here: (Download PDF)
  • The Gatesman Agency files Motion to Dismiss (April 29, 2024) Read Here: (Download PDF)
  • PYNQ Files Response to Motion to Compel Arbitration (March 29, 2024) Read Here: (Download PDF)
  • FedEx Files Reply Brief for Motion to Compel Arbitration. (April 5, 2024) Read Here: (Download PDF)
  • Court Enters Order Compelling Arbitration. (May 6, 2024) Read Here: (Download PDF)
  • Court Enters Order Dismissing The Gatesman Agency (June 3, 2024) Read Here: (Download PDF)
  • The Court in PYNQ Logistics, Inc. v. FedEx Ground Package Systems, Inc. Ordered that the Case be sent to Arbitration on (May 6, 2024) Read Here: (Download PDF) On (May 22, 2024), PYNQ sought Chapter 7 Bankruptcy Protection in the US Bankruptcy Court of the Northern District of California.

Representing FedEx Contractors

As part of its Transportation and Logistics Group, Possinger Law Group represents FedEx Contractors, and has developed a reputation for its experience in advising and representing FedEx Contracted Service Providers (ISPs and TSPs) in disputes with the global giant. We understand the FedEx ISPA, the FedEx System, and the issues facing FedEx Contractors. For more information about our services to FedEx Contractors visit our FedEx Contractor Webpage.

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