Judge Dismisses Yellow Corp.'s Frivolous Lawsuit; Teamsters Triumph

TL/DR -

The International Brotherhood of Teamsters won against Yellow Corporation when a $137 million-dollar lawsuit filed by Yellow Corp. was dismissed by U.S. District Court Judge Julie A. Robinson. Despite having taken $5 billion in wage and benefit concessions from rank-and-file Teamsters since 2019 and a $700 million federal government bailout, Yellow Corp. filed for bankruptcy in August of last year after paying out millions of dollars in bonuses to its executives. Teamsters General Secretary-Treasurer Fred Zuckerman accuses Yellow Corp. of exploiting the legal system by filing false claims against the Teamsters Union and using their attorneys to deny workers what they are legally owed.

Teamsters Union Wins Major Legal Victory against Yellow Corporation

The International Brotherhood of Teamsters has achieved a significant win against Yellow Corporation following the dismiss of the corporation's $137 million lawsuit by U.S. District Court Judge Julie A. Robinson.

The lawsuit, filed by Yellow Corporation, was seen as an attempt to undermine worker rights and tarnish the Teamsters' reputation. The union successfully defended its position and refuted the unfounded breach of contract claims brought by Yellow Corporation. The court concurred with the union, resulting in the lawsuit's dismissal.

"Yellow's executives drove this company into the ground despite significant sacrifices from its workforce for decades. This lawsuit was management's desperate attempt to save face," said Sean M. O'Brien, Teamsters General President.

Despite taking significant concessions from its workforce and a $700 million federal government bailout, Yellow Corp. declared bankruptcy last year, but not before awarding hefty bonuses to its executives.

Meanwhile, Yellow Corp.'s attorneys are actively working to deny WARN Act claims from workers affected by the company's bankruptcy, while rewarding their own attorney in the now-dismissed lawsuit with over $1 million in fees.

"The company's lawyers are actively working to attack retirees and deny workers what they are legally owed," said Fred Zuckerman, Teamsters General Secretary-Treasurer. "We will continue to fight to ensure that workers are protected."

Founded in 1903, the International Brotherhood of Teamsters represents 1.3 million hardworking people in the U.S., Canada, and Puerto Rico. Visit Teamster.org for more information. Follow us on Twitter @Teamsters and "like" us on Facebook at Facebook.com/teamsters.

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