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:
United States Court of Appeals Decision
Please Note: Possinger Law Group PLLC did not represent any of the parties involved in the above case.
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