Legal issues

Flexport lawsuit accuses Freightmate AI of copyright infringement

Supply chain management company Flexport has filed a lawsuit against Freightmate AI alleging former Flexport employees now heading the logistics software company stole tens of thousands of sensitive commercial documents.

The 23-page complaint, filed in the U.S. District Court for the Northern District of California on Wednesday, accuses Freightmate AI founders Yingwei (Jason) Zhao and Bryan Lacaillade of building their company on “information and documents brazenly stolen from Flexport.”

According...

https://www.freightwaves.com/news/flexport-lawsuit-accuses-freightmate-ai-of-copyright-infringement

‘Owner’ of fictitious logistics firm sentenced in $2.8M COVID relief

A freight-related Paycheck Protection Program loan scam wrapped up recently with the second of two convicted Ohio women receiving her final sentencing.

In March 2024, Lorie A. Schaefer, 63, of Westerville, and Latisha C. Holloway, 42, of Reynoldsburg, were indicted on charges of orchestrating a multimillion-dollar fraud scheme involving COVID-19 relief funds. They illegally obtained more than $2.8 million in PPP loans through falsified documents and fraudulent business claims.

Schaefer...

https://www.freightwaves.com/news/owner-of-fictitious-logistics-firm-sentenced-in-2-8m-covid-relief

Stolen load of cellphones involving RXO may be another key broker liability case

A case involving giant 3PL RXO has the potential to add another decision to the body of law regarding broker liability.

RXO (NYSE: RXO) brokered a shipment of cellphones for phone reseller PCS Wireless. The shipment was booked a few months before RXO was spun off as a standalone 3PL by XPO, and RXO is identified in the initial lawsuit as “f/k/a” – formerly known as – XPO (NYSE: XPO).

The shipment totaled about 54,000 phones with a value of approximately $11.5 million. They were to move from Texas...

https://www.freightwaves.com/news/stolen-load-of-cellphones-involving-rxo-may-be-another-key-broker-liability-case

Kal Freight Bancar Rephic que se queda bajo el Capítulo 11, aliviando los temores de la salida caótica

kal-freight-bancar-rephic-que-se-queda-bajo-el-capitulo-11,-aliviando-los-temores-de-la-salida-caotica

El cierre de Kal Freight en las próximas semanas no estará bajo una acción de bancarrota del Capítulo 7, como habían temido algunos de los acreedores de la compañía, sino que estará a través de los procedimientos existentes del Capítulo 11. Esa es una de las principales conclusiones de la hoja de...

https://fullavantenews.com/kal-freight-bancar-rephic-que-se-queda-bajo-el-capitulo-11-aliviando-los-temores-de-la-salida-caotica/?lang=es

Kal Freight bankruptcy staying under Chapter 11, allaying fears of chaotic exit

Kal Freight’s closure in the coming weeks will not be under a Chapter 7 bankruptcy action, as had been feared by some of the company’s creditors, but will be a wind-down through the existing Chapter 11 proceedings.

That’s one of the main takeaways from the binding settlement term sheet agreed to Wednesday in the U.S. Bankruptcy Court for the Southern District of Texas. All the key creditors of the truckload carrier have signed on to the pact, and Bankruptcy Court Judge Christopher Lopez approved...

https://www.freightwaves.com/news/kal-freight-bankruptcy-staying-under-chapter-11-allaying-fears-of-chaotic-exit

Daimler Truck subsidiary asks court to force Mexican supplier to ship parts

A subsidiary of Daimler Truck North America said it faces “catastrophic” disruption to its manufacturing operation unless a federal court intervenes to keep its Mexico-based supplier from stopping parts shipments.

Detroit Diesel Corp. (DDC) filed an amended complaint to its existing lawsuit against Martinrea Honsel Mexico SA de CV on March 4 in the U.S. District Court for the Eastern District of Michigan.

The complaint asks the court to order Martinrea Honsel to keep shipping transmission housing...

https://www.freightwaves.com/news/daimler-truck-subsidiary-asks-court-to-force-mexican-supplier-to-ship-parts

KAL Freight on its last legs: Will drivers be stranded if it closes quickly?

The bankruptcy action of KAL Freight, with its charges of corruption in the background, is nearing a “do or die point,” according to a filing in the case, with motions and countermotions flying back and forth last week in a Texas bankruptcy court.

The key takeaways from those motions are that KAL Freight still has plenty of trucks on the road, and that’s an issue; and the goal of a Chapter 11 proceeding, which is to allow a company to reorganize its ownership and debt load and continue...

https://www.freightwaves.com/news/kal-freight-on-its-last-legs-will-drivers-be-stranded-if-it-closes-quickly

NS: CSX Virginia terminal railroad antitrust claims a ‘ghost story’

WASHINGTON — Norfolk Southern has urged the Surface Transportation Board to continue a case of regulatory housekeeping involving control of Virginia terminal railroad Norfolk & Portsmouth Belt Line.

Last month CSX told the STB that the Justice Department was probing its allegations about anticompetitive conduct involving NS and NPBL at a major Norfolk container terminal. CSX also asked the board to conduct a thorough review of competitive issues at the Norfolk International Terminal.

CSX contends...

https://www.freightwaves.com/news/ns-csx-virginia-terminal-railroad-antitrust-claims-a-ghost-story

Justice probes antitrust claims against NS, Norfolk & Portsmouth Belt Line

WASHINGTON — The Justice Department’s Antitrust Division is investigating Norfolk Southern and Virginia terminal railroad Norfolk & Portsmouth Belt Line for alleged anticompetitive conduct against CSX at a major Norfolk container terminal.

CSX, which says NPBL operates like an alter ego of NS, disclosed the investigation in a filing with the Surface Transportation Board last week.

CSX and NS have been locked in a legal dispute over the NPBL for six years. NS has controlled the 36-mile NPBL since...

https://www.freightwaves.com/news/justice-probes-antitrust-claims-against-ns-norfolk-portsmouth-belt-line

Shoppers fearful of crime at retail locations

A recent nationwide survey by Flock Safety and Zencity reveals a significant shift in consumer behavior due to escalating concerns over organized retail crime. Approximately one-third of consumers see crime at retail locations as a serious issue, prompting many to alter their shopping habits.

The survey highlights that 58% of shoppers now prefer online shopping to avoid potential in-store crime incidents. Furthermore, among those who have witnessed retail crime firsthand, 63% are more inclined...

https://www.freightwaves.com/news/shoppers-fearful-of-crime-at-retail-locations

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