FedEx Lawsuit

Given all of the controversy that surround the delivery drivers for Fedex Ground, it’s easy to forget that Fedex Ground is merely one portion of the overall corporate giant that is Fedex Corp.  However, all of these problems that center on the classification of Fedex Ground drivers as independent contractors could affect the company’s bottom line soon, even though Fedex Corp. recently reported a positive last quarter, according to the Wall Street Journal.

“We believe U.S. [gross domestic product] will grow less than 3%” for the rest of FedEx’s fiscal year, which ends May 30, said FedEx Chief Financial Officer Alan B. Graf Jr. He said the company lowered its profit guidance “almost entirely based on freight market” and economic forecasts.

The reduced outlook overshadowed FedEx’s results for the first quarter ended Aug. 31, which rose 4% from a year earlier. At 4 p.m. in New York Stock Exchange composite trading, shares of FedEx fell $2.88 to $104.63.

Wall Street had hoped for a lift for sluggish freight-industry volumes from the annual holiday shipping surge. The peak shipping season traditionally begins in late summer and builds into the fall as retailers and other businesses load boats, planes, trains and trucks with products ahead of the holiday shopping crush.”

While no mention of the Fedex Ground legal problem is made here, it’s obvious that hundreds of millions of dollars being spent on one issue will harm the company’s overall results.  If you have been wrongfully classified by Fedex Ground, contact the Fedex overtime attorneys at Pulaski & Middleman to schedule an initial consultation.