Route Consultant Prevails in Logistics Legal Battle With FedEx Ground: Court of Appeals Decision
NASHVILLE, Tenn., April 4, 2024 -- On Monday, April 1, the United States Court of Appeals for the Sixth Circuit ruled in favor of Route Consultant following arguments presented in FedEx Ground Package System, Incorporated, v. Route Consultant, Inc. This judgment affirms a lower court ruling by Judge Aleta Trauger of the United States District Court and dismisses all charges FedEx Ground brought against Route Consultant.
Surging inflation poses challenges for service professionals contracted by FedEx Ground, who deliver the vast majority of packages for the network. Spencer Patton, Founder of Route Consultant, has urged the logistics giant to enhance compensation for its small business owners.
In his statement from August 2022, Patton emphasized, "[These] are small business owners, many with just 10-25 employees, that simply do not have the financial resources to withstand historic price increases in fuel, wages, and trucks. FedEx Ground has been unwilling to address the dramatic cost changes in 2022, putting the entire network in peril." FedEx Ground initiated claims against Route Consultant in response.
In the affirming ruling on Monday, Judge Andre Mathis remarked, "...We concur with the district court that FXG failed to plausibly allege that Route Consultant made a single false or misleading statement."
Annalee Cate, CEO of Route Consultant, expressed satisfaction with the ruling.
"We are grateful to see courts repeatedly affirm our right to advocate for FedEx Ground contractors and logistics professionals more broadly. Route Consultant will continue to speak truth to power so that small business owners also benefit from the growth in e-commerce," she said.
Route Consultant remains at the forefront of guiding logistics investors and has facilitated the transfer of ownership for over 4,000 logistics routes in the past two years alone. In support of investors and operators, Route Consultant organizes various free events for contractors nationwide and online. The annual Route Consultant Expo is scheduled for August 2-4, 2024, in Dallas, Texas.
About Route Consultant
Route Consultant is the definitive resource in the logistics sector. With decades of collective experience in logistics operations and e-commerce investments, Route Consultant programs offer clear pathways to profitability and operational excellence for new investors and logistics professionals.
Headquartered in the Nashville, Tennessee area, Route Consultant specializes in FedEx Ground, Amazon, bread, waste management, security, and EMS routes. Route Consultant serves prospective investors and current operators through a variety of digital and in-person educational programs. Visit RouteConsultant.com to learn more about Route Consultant’s programs and events.
Contact: Chad Schmidt | 615-504-6336 | chad@sheridanpr.com
