UPS News for UPSers

FedEx Loses Bid to Shield Papers in Overbilling Lawsuit - Bloomberg

FedEx Corp. (FDX) lost a bid to shield some corporate documents from public disclosure by lawyers suing two units of the package delivery company for knowingly overbilling customers for commercial deliveries.

The ruling today by U.S. Magistrate Judge Charmiane Claxton in Memphis, Tennessee, came in a 2011 lawsuit filed by two law firms -- one in California, the other in Georgia -- claiming the company has been intentionally charging higher residential rates for deliveries made to unmistakably commercial recipients. The suit could be worth tens of millions of dollars to the plaintiffs.

FedEx has denied the overcharging allegations and said customers can avail themselves of a procedure for challenging the charges. Company attorney Justin Ross opposed the lawyers’ request, telling the judge that with only one major U.S. competitor, United Parcel Service Inc. (UPS), any disclosures can potentially harm FedEx.

“Every little thing that you can get on us is a competitive advantage,” Ross said.

UPS CEO got $10.7 million in 2012 compensation - Yahoo

United Parcel Service Co. gave its chairman and CEO compensation valued at $10.7 million last year, down 7 percent from the year before, according to an Associated Press analysis.

D. Scott Davis got a 3 percent increase in salary, to $1,049,703, but most of his compensation came in the form of stock awards.

The company says those awards went down in value because UPS failed to hit targets for revenue growth, return on investment and other financial measurements.

UPS to forfeit $40 million over illegal online pharmacy shipments - Reuters

United Parcel Service Inc has agreed to forfeit $40 million it earned from illegal Internet pharmacies shipping drugs using its services, U.S. authorities said Friday.

As part of the settlement, UPS entered a non-prosecution agreement with the U.S. Department of Justice.

Prosecutors said UPS was on notice from 2003 to 2010 that Internet pharmacies were shipping drugs without prescriptions, yet the company didn't put procedures in place to shut down their accounts.

UPS’s Davis Nears Typical CEO Tenure as Kuehn Seen Next - Bloomberg

Since founder Jim Casey left United Parcel Service Inc. (UPS) after more than five decades in charge, the company’s chief executive officers have served for an average of 5 1/2 years. Scott Davis reaches that milestone in June.

That means a leadership change is probably approaching at the world’s largest package-delivery operator, according to Kevin Sterling of BB&T Capital Markets and other analysts. A new CEO almost certainly will come from within, as have all the previous chiefs, Sterling said.

Transitions since Casey’s 1962 exit have earned UPS a reputation for stability in a situation yet to be faced by FedEx Corp. (FDX), which Fred Smith has led since starting the carrier in 1971. UPS promoted Davis, 61, from chief financial officer and current CFO Kurt Kuehn is the likeliest to succeed him, said Sterling and David Campbell of Thompson Davis & Co.