Court Certifies UPS Class-Action Suit
Class Action News
[##_1L|1298395682.jpg|width="130" height="90" alt=""|_##]A California appeals court has reversed a decision blocking Mail Boxes Etc. franchisees from proceeding with a class-action lawsuit against UPS Inc., a group representing the franchisees said Friday. In a 21-page decision, the state appeals court ruled that the Los Angeles County Superior Court was wrong in denying a motion to certify a class action in the case.
Platinum Shield Association, a group that represents current and former franchisees seeking class-action status, alleges that the shipping company intentionally misled store owners into believing a new concept - The UPS (nyse: UPS - news - people ) Store - would be more profitable than their existing stores.
UPS acquired the Mail Boxes Etc. chain in 2001 and later renamed most of the stores as The UPS Store.
A copy of the decision was provided to The Associated Press by the group.
"This is a huge win for our organization," Howard Spanier, president of the association and a former franchisee, said in a statement. Spanier said franchisees were not given adequate information about the rebranding, which he said was "unavoidable and disastrous for many."
Franchisees involved in the suit are seeking damages and the chance to rescind their UPS Store contracts, the group said.
A call seeking comment from Atlanta-based UPS was directed to an attorney involved with the case. A voicemail message was not immediately returned.
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