Do Class I's fix prices? Is it possible w. truck competition? Does this lawsuit stand a chance?
Railroads Step Up Against Class Action Lawsuit
Railroads Step Up Against Class Action Lawsuit
Four major U.S. railroads — Union Pacific Corporation (UNP - Analyst Report), Norfolk Southern Corp. (NSC - Analyst Report), CSX Corporation (CSX - Analyst Report) and Burlington Northern Santa Fe — have appealed against the class one action after the District of Columbia court granted class action status to a price fixing lawsuit.
The U.S. district judge, Paul Friedman of the DC court, brought forward the case of eight shipping companies that accused these railroads of imposing a series of price increases between 2003 and 2008.
A class action lawsuit would now imply that the railroads have to defend themselves from collective charges brought by the shippers under Federal Rules of Civil Procedure Rule 23 and 28 U.S.C.A. § 1332(d).
The carriers, which dictate more than 90% of the freight revenues in the industry, have stated that the court decision could cost approximately $10 billion or more in claim settlements, causing a significant financial burden. Lawyers supporting the railroads have argued that the case should be dismissed due to the lack of proper evidence.
Next stop, Willoughby
~el Jefe :: RAILROAD.NET Site Administrator/Co-Owner; Carman at Naugatuck Railroad
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~el Jefe :: RAILROAD.NET Site Administrator/Co-Owner; Carman at Naugatuck Railroad
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