ET 14:33

Red Line Logistics Faces RICO Class Action Over Alleged Freight Revenue Concealment

Owner-operators filed a proposed class action against Sterling Heights, Michigan-based Red Line Logistics Inc. and two officials on Sept. 17, 2026, alleging the carrier understated freight revenue owed to drivers under percentage-of-revenue leases. The suit, filed in U.S. District Court for the Eastern District of Michigan, claims Red Line quoted customers one rate while telling drivers a lower figure, then retained the difference. One cited agreement paid drivers 80% of load value. Plaintiffs allege Red Line used a TMS called Apex to track actual load values while drivers saw reduced amounts in a separate system, Sylectus. The complaint brings federal Racketeer Influenced and Corrupt Organizations Act claims, alleging wire fraud. Plaintiffs seek more than $1 million in damages, potentially tripled under RICO, plus punitive damages, attorney fees and a profit accounting. The proposed class comprises roughly 50 or more owner-operators. Red Line has not responded to the claims, and the allegations remain unproven.

ByTicklex Editorial