The United Parcel Service will pay approximately $12 million following a multi-defendant class action lawsuit that was filed by an auto parts dealer in Ardmore, Alabama, The News Courier reports.
In November 2011, the U.S. District Court of North Alabama received a complaint from Barber Auto Sales stating that UPS overcharged more than $4,600 for shipping services. In instances of such accounting errors, business insurance can protect a business from any wrongdoing, purposeful or not.
Barber Auto Sales complained that upon entering the information and weight of the package it intended to send out with UPS, the company added on charges unlawfully.
While UPS maintains it did no wrongdoing, it repaid Barber, and an audit of UPS revealed that consumers and businesses totaling in the hundreds of thousands were overcharged, according to the news source.
As a result of the settlement that was reached in August, UPS was to pay $4 million in counsel fees, $10,000 to Barber Auto Sales, a settlement fund of $2 million and create a $10 million fund for future refunds and account credits, the news source states.