The settled litigation involves a multi-claim suit filed by Forward Air in the Federal District Court in Greeneville, TN arising out of the December 2000 acquisition by Forward Air of assets from Dedicated Transportation Services.
As a linehaul transportation provider to Dedicated, Chattanooga, TN-based U.S. Xpress made a competing bid to acquire the same assets. It was later accused of unfair competition after Forward Air won the bid to purchase Dedicated's assets.
U.S. Xpress denied those charges but agreed to settle for $1.3 million in cash and terminate use of the "Dedicated" name to settle all matters in controversy. Forward Air said it expects to record a one-time gain of approximately $1 million in the fourth quarter this year to reflect the settlement amount net of legal expenses.
U.S. Xpress said it expects to take a $1.6 million charge against earnings in the fourth quarter to reflect the cost of this settlement.
