🎣 MoLo & ArcBest Lawsuit

Good morning. At least two MCs are currently involved in holding dozens of loads hostage and demanding ransom payments for their release. Additionally, we have received information on the MoLo and ArcBest lawsuit settlement after former employees alleged they were misclassified, exempting them from overtime.

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🐔 WHAT’S COOKIN’ IN FREIGHT

🚛 Ocean's 11-Style Freight Heist Underway. We have received insider information from an affected freight brokerage that overseas scammers are currently executing a sophisticated heist utilizing Agility Express (MC 1089634) and ZAP Transportation (MC 434847). These scammers have targeted over a dozen freight brokers, including major industry names. Within a span of 3-5 days, they have hijacked more than two dozen loads, holding them hostage and demanding ransom payments. The affected brokers are collaborating to track the scam, and the FBI is now involved.

🌪️ Freight Broker Takes On Hurricane Beryl. Today, we want to give special recognition to a Houston-based freight broker. During Hurricane Beryl, RFX employee Kahana Sizemore faced a power outage while working from home in Houston. Undeterred, he drove through the storm to the office, which miraculously had power, to serve his customers. Chief Capacity & Sales Officer Ryan Nolan said, "As a leader of this organization, I obviously cannot condone this type of reckless behavior. However- I’d be lying if I said our entire team wasn’t fired up when he trekked into the office during Hurricane Beryl.”

🔋 EV/Autonomous Trucking Update. Waabi, a Toronto-based startup, is leveraging NVIDIA's generative AI technology to develop fully driverless autonomous trucks, planning to launch operations next year, while Nikola exceeded its Q2 guidance by wholesaling 72 hydrogen fuel cell electric trucks, and Entek is set to receive a $1.2 billion loan from the U.S. Energy Department to build a lithium-ion battery separator manufacturing facility in Indiana, boosting the domestic EV supply chain.

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MoLo & ArcBest Employee Wage Lawsuit Settlement

Employees who worked for MoLo and/or ArcBest in Illinois between May 1, 2020, and June 10, 2023, may be entitled to a payment from a class action settlement regarding wage and hour claims. ArcBest acquired MoLo Solutions in 2021, creating a top-15 truck broker in the process.

Claims and Settlement:

• Former employees allege that MoLo and ArcBest misclassified them as "exempt" from overtime, failing to pay premium compensation for hours worked over 40 in a given workweek.
• An anonymous source shared this settlement notice after learning about the layoffs and restructuring at MoLo, which changed positions ranging from supervisory to hourly (salaried), possibly due to the wage lawsuit.
• MoLo and ArcBest deny these allegations, and no court ruling has been made on the merits of the claims.
• A settlement was reached to avoid further litigation and associated expenses.

Potential Settlement Payment:

• MoLo and ArcBest have agreed to pay a total of up to $9.5 million. This amount will be used to cover settlement awards, reimbursement of actual litigation expenses, service awards for each plaintiff, and other significant fees and awards.

Hearing Information:

• A hearing will be held on November 18, 2024, at the Suffolk County Supreme Court, NY to determine whether this settlement is adequate.

Legal Rights and Options:

• Affected employees will receive a paper check. However, employees can visit molosettlement.com to opt into receiving their payment electronically.
• Employees are not required to attend the November hearing but are welcome to do so. Written objections will be considered by the Court if sent in a timely fashion.
• Employees can hire their own lawyer to attend the hearing, but it is not necessary according to the Court.

Further Information:

• A copy of the proposed Settlement Agreement can be obtained at molosettlement.com.

For any additional information or questions regarding the settlement, please visit the provided website or contact the Settlement Administrator.

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🌎 AROUND THE FREIGHT WEB

🚚 The FMCSA has delayed several trucking regulations, including the speed limiter rule, ELD revisions, and automatic braking standards, with new deadlines extending into 2025.

💼 An article explores the world of freight brokerage and delves into RXO's significant $1.025 billion acquisition of Coyote Logistics.

🚨 Four Hialeah, Florida residents were sentenced to 2.5 to 5 years in prison for stealing $1.7 million worth of goods in a cargo theft operation in the Southeastern U.S. between May and November 2019.

📉 Federal Reserve Chair Jerome Powell expressed concerns that maintaining high interest rates for too long could jeopardize economic growth and employment.

🌪️ Hurricane Beryl caused massive power outages in Texas, leaving millions without electricity and facing dangerous heatwave conditions.

FREIGHT MEME OF THE DAY

Also, check out:

• 🎧 The FreightCaviar Podcast. Listen to this week's podcast on Spotify & Apple Podcasts.
• Interested in sponsoring FreightCaviar content? Contact Paul at pbj@freightcaviar.com to learn more.