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Saturday, April 27, 2024

FedEx accused of rolling odometers back when selling trucks to food vendors

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TRENTON, N.J. (Legal Newsline) — Several food truck business owners who purchased FedEX fleet delivery trucks allege FedEx and others engaged in odometer fraud. 

Gabriel Barrera Almonte, Mayra Magadan Munoz, James Jackman, Miki Nolin and Richard Alliet, on behalf of themselves and all others similarly situated, filed a complaint June 13 in the U.S. District Court for the District of New Jersey against Fedex Corporation, Automotive Rentals, Inc., Holman Fleet Leasing LLC, Holman Automotive Group Inc., and ABC Corporations 1-20 alleging odometer fraud and other claims. 

According to their complaint, the plaintiffs all purchased FedEx/Holman vehicles to convert into food trucks. They claim that as part of an agreement between FedEx and Holman, FedEx would transfer its used Vehicles to Holman, with Holman then selling them at auction. 

The plaintiffs further claim that the defendants "systematically and surreptitiously" replaced odometers on thousands of used diesel fleet delivery trucks to show zero miles when the trucks had been driven "hundreds of thousands of miles." 

The plaintiffs allege shortly after purchasing the trucks, the vehicles began to experience  "performance and maintenance issues." They claim the defendants knowingly committed odometer fraud and sold vehicles, some with more than 75,000 miles, at a premium though they were past their "useful life expectancy." 

The plaintiffs seek monetary relief, interest, trial by jury and all other just relief. They are represented by Martin Schramia of Stark & Stark PC in Hamilton and Matthew Mendelsohn of Mazie Slater Katx & Freeman LLC in Roseland.

U.S. District Court for the District of New Jersey case number 1:23-CV-03224-KMW-MJS

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