FR8 Solutions settles RICO case over alleged $7,000 trucking rate gap

FR8 Solutions and 22 independent truck drivers have reached a settlement in a federal civil RICO lawsuit, according to a July 27 joint notice of settlement filed with the court. The drivers alleged that FR8 altered rate sheets and concealed revenue from the loads they hauled. The lawsuit claimed that FR8 supplied settlement statements and dispatch documents that understated the company's revenue, reducing the percentage-based payment to the drivers.

The lawsuit highlighted two disputed shipments. For a trip from Wood Dale, Illinois, to Gaffney, South Carolina, FR8's system showed a $2,400 rate, while the drivers claimed they received $2,500. Another shipment from Del Rio, Texas, to Kansas City, Kansas, involved a rate of $8,000 as shown by FR8, but the drivers stated they were paid $15,000.

These discrepancies amounted to a $7,000 difference, which, under the drivers' claimed 88% payment formula, equated to $6,160. The lawsuit also named Ascent On-Demand, Active On-Demand, and Landstar as companies involved in the disputed transactions. The drivers alleged that one of these companies had revealed different rates during June 2023, leading FR8 to terminate their contracts and block them from accessing its mobile application.

FR8 and the individual defendants sought to dismiss the lawsuit, arguing that the agreements set compensation through separately negotiated rates for each truckload. However, Judge William Young rejected this argument, stating that it could lead to an absurd result. The court allowed the claims against FR8 and Kajdic to continue in February, retaining allegations involving messages described as threats and messages originally written in Bosnian.

FR8 Solutions is an active interstate motor carrier operating out of Jacksonville, Florida, with 65 power units and 78 drivers, as reported by FMCSA records. The company handles cargo, transportation, and cross-border services, offering owner-operators 88% of the agreed rate. Accurate access to the underlying load rate is crucial for percentage-based driver pay.