Class action thrown out in suit against 4 largest U.S. railroad companies

The suit containing more than 30,000 shippers alleges the four companies colluded to fix prices

The four largest U.S. railroad companies are breathing a momentary sigh of relief after an appeals court reversed a lower court’s decision to allow a price-fixing lawsuit by shippers to proceed as a class action lawsuit.

Union Pacific Corp., Burlington Northern Santa Fe, CSX Corp. and Norfolk Southern Corp. faced potential damages of at least $100 billion. A class of about 30,000 shippers alleges in the suit that the four operators colluded at a 2003 meeting to impose a surcharge tied to total transportation costs rather than to actual fuel prices during a 3 1/2-year period.

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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