The Straits Times
Published on Dec 12, 2012

FedEx employee emails claim firm overcharged businesses


NEW YORK (REUTERS) - FedEx Corp ignored suspicions by an employee that it "systematically" overcharged business customers for years by billing them for higher residential delivery rates, according to emails made public in a lawsuit against the company.

"I have brought this to the attention of many people over the past five or six years, including more than one managing director, and no action has been taken to address it," Mr Alan Elam, a FedEx sales executive, wrote in an Aug 2011 email that was unsealed on Monday by a federal judge in Memphis.

"My belief is that we are choosing not to fix this issue because it is worth so much money to FedEx," he wrote in a separate email to an unidentified superior the same day.

A FedEx spokeswoman said the 11 documents unsealed "do not tell the entire story of this case," according to reports by the Wall Street Journal and Bloomberg. She said the company will continue to defend itself against the allegations in court.