FedEx Sues Brooklyn Law Firm Over Fake Accident Claims

FedEx moves nearly everything Americans buy, from groceries to medical supplies, trucks are the lifeblood of the economy. And of course there are cunning people, who managed to find a way to use it to their advantage.

Month ago FedEx filed a lawsuit against a Brooklyn based personal injury law firm. The allegations are - staged accidents, phony injuries, and a coordinated web of lawyers and doctors who allegedly pushed "patients" into unnecessary surgeries and epidural injections just to inflate insurance payouts.

The Scam

Because FedEx vehicles are everywhere and have high mandatory minimum insurance premiums, this has opened the door for unscrupulous operators to artificially create a crisis and quickly collect large payouts.

Very easy strategy, they were purposely causing minor contact with a commercial truck, then sending passengers to specific doctors who provide medical documentation for exaggerated injuries. Then using unnecessary medical procedures to transform a minor fender-bender into a seven-figure lawsuit.

The Hidden Tax on Every Household

While it may seem a victimless crime against wealthy corporations, unfortunately wealthy corporations never suffer financially, they just inflate the bill and pass it to customers.

Every fraudulent claim and excessive settlement gets baked into the cost of doing business. Then you have

1. Higher Insurance Premiums
2. Increased Shipping Costs
3. Inflation at the Checkout Counter (higher transportation costs inevitably lead to higher prices for consumer goods).

Note: According to the U.S. Chamber of Commerce, lawsuit abuse costs the American economy $529 billion annually, which translates to $4,207 per household.

The Bottom This Is a Buy Signal

By fighting these fake lawsuits, FedEx is basically stopping a massive drain on its profits. If they win, they’ll save a fortune on legal fees and insurance costs, which means more money stays in the company. This is a great sign, it shows FedEx could push the stock price higher as the company stops losing money to scams.