The Owner-Operator Independent Drivers Association (OOIDA) announces it has filed a class action against another major U.S. motor carrier for alleged violations of the federal leasing regulations. A complaint was filed in the U.S. District Court for the Northern District of Georgia against Allied Holdings Inc. and its wholly owned subsidiary, Allied Automotive Group, and its wholly owned motor carrier, Allied Systems Ltd. The Decatur, GA, motor carrier is the largest regulated motor carrier in North America specializing in the transportation of new and used automobiles and light trucks. Allied Holdings is a publicly traded corporation (AMEX: AHI).
OOIDA is joined in the suit by two of its owner-operator members who are currently leased to Allied Systems. The class-action suit charges Allied has been violating the federal truth-in-leasing regulations by its failure to include certain provisions in its lease agreements that are required by the federal regulations, while incorporating other provisions that conflict with the regulations. The lawsuit also alleges that Allied does not adhere to or perform certain obligations established by the federal leasing regulations.
OOIDA is seeking declaratory, injunctive and monetary relief on behalf of owner-operators affected by Allied Systems. OOIDA has also requested a preliminary injunction to prohibit Allied Systems from doing business with equipment it does not own until its leases are brought into compliance with federal regulations.
OOIDA is asking the court to certify the suit against Allied Holdings and its subsidiaries as a class action to include other owner-operators who have experienced similar losses through their leases with the carrier.
Allied joins a growing list of motor carriers targeted in recent years by OOIDA in its efforts to promote compliance with federal leasing regulations. Other carriers that the nation’s largest organization of professional truckers currently has court actions against include Landstar Systems, Heartland Express, Ledar Transport, New Prime Inc., Swift Transportation and Arctic Express.
