I earlier posted a note about a settlement of a class action by UPS. Two UPS Inc. customers objected on November 7, 2011 to a proposed class settlement in a suit in Alabama claiming the company overcharged for customer-measured shipments, saying the $4 million in attorneys’ fees constitutes an outrageous chunk of the deal.
UPS agreed to pay $12 million to settle a lawsuit claiming they overcharged for shipping packages.
The class representative, Barber Auto Sales, will receive $10,000 in the settlement. Barber Auto Sales filed suit in federal court in Alabama in 2006 claiming that it had overpaid UPS more than $4,600 in shipping charges. The settlement allows anyone who shipped a package between May 15, 2006 and August 29, 2011 to file a claim if they had to pay additional charges because of the way UPS measured the size of packages.
UPS, which claimed no wrongdoing, has agreed to pay $4 million in legal fees, set aside $2 million in a settlement account, and establish a $10 million account for credits and future refunds.
A final approval hearing will be held in federal court in Birmingham on December 5.