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

FR8 Solutions and 22 independent drivers have reached a settlement in a federal civil RICO lawsuit. The drivers accused the company of altering rate sheets and hiding revenue from hauled loads. On July 28, a Florida court dismissed the case with prejudice. The court filings do not disclose the settlement’s financial terms.

Plaintiffs and defendants filed a joint notice of settlement on July 27. They told the court they had resolved the matter and were finalizing their agreement. Judge Wendy Berger closed the case the following day. Her order allows either side 60 days to request a final order or reopen proceedings.

Drivers disputed the rates behind their pay FR8 and the drivers worked under agreements that promised drivers 88% of each load’s linehaul rate. The complaint claims company records showed smaller rates than FR8 actually received. Drivers claimed FR8 supplied settlement statements and dispatch documents that understated the company’s revenue.

The lawsuit says those documents reduced their percentage-based payment on individual loads. One disputed shipment ran from Wood Dale, Illinois, to Gaffney, South Carolina. FR8’s system showed a $2,400 rate, while the complaint claims FR8 received $2,500. Another shipment ran from Del Rio, Texas, to Kansas City, Kansas.

For that move, the drivers claim FR8 showed $8,000 but received $15,000. The $7,000 difference represented $6,160 under the drivers claimed 88% formula. Drivers also identified Ascent On-Demand, Active On-Demand and Landstar in disputed transactions. They claimed another company operator revealed different rates during June 2023.

FR8 then ended their contracts and locked them out of its mobile application, the lawsuit states. Court rejected the defendants’ contract reading FR8 and the individual defendants asked the court to dismiss the lawsuit. They argued the agreements set compensation through separately negotiated rates for each truckload.

Judge William Young rejected that reading at the dismissal stage. He wrote that it could produce an absurd result. Young allowed claims against FR8 and Kajdic to continue in a February order. The court also retained allegations involving messages that drivers described as threats.

Kajdic argued Google Translate distorted messages originally written in Bosnian. Young made no final findings about the drivers’ factual claims. FMCSA records list FR8 Solutions as an active interstate motor carrier. The Jacksonville, Florida, company reports 65 power units and 78 drivers. FR8 also reports 4. 72 million vehicle miles during 2025.

Its website markets brokerage, transportation and cross-border services. The site also advertises owner-operators can take home 88% of the agreed rate. Why It Matters Percentage-based driver pay requires accurate access to the underlying load rate. A disputed rate gap can become thousands of dollars on one shipment.

Click here for more articles on cargo theft and freight fraud by Phil Brink. 6 arrested as UK police target cargo theft costing $88M a year – FreightWaves Yerevan-based group posed as US carriers, stole freight and converted proceeds to crypto, Armenian police say – FreightWaves Police recover $258K copper load from stolen J. B.

Hunt trailer in North Carolina – FreightWaves The post FR8 Solutions settles RICO case over alleged $7,000 trucking rate gap appeared first on FreightWaves.