Printer Friendly

CONSOLIDATED FREIGHTWAYS: ANTITRUST LAWSUIT AGAINST CONSOLIDATED FREIGHTWAYS, OTHERS, IS DISMISSED

 CONSOLIDATED FREIGHTWAYS: ANTITRUST LAWSUIT AGAINST
 CONSOLIDATED FREIGHTWAYS, OTHERS, IS DISMISSED
 PALO ALTO, Calif., Oct. 30 /PRNewswire/ -- Consolidated Freightways Inc. (NYSE: CNF) issued the following statement today:
 A federal judge in South Carolina on Friday dismissed a five-year-old lawsuit against Consolidated Freightways Inc. (CF) and two other large trucking companies that alleged the companies conspired to force competitors out of business.
 In a strongly worded opinion that said alleged evidence in the case was "preposterous" and "read like a cheap novel," U.S. District Judge Henry Herlong Jr. granted CF's motion for summary judgment and dismissed the case filed by David Lifschultz, owner of Lifschultz Fast Freight, against CF, Yellow Freight System and Roadway Express Inc.
 Lifschultz had alleged that the three trucking companies conspired with their labor union and then set artificial prices to force competitors such as Lifschultz out of business, violating the Sherman Antitrust Act.
 Judge Herlong said in his opinion that, "Lifschultz has charged the defendants with seriously egregious conduct, alleged to have occurred for a period of at least 25 years. The conspiracy alleged by Lifschultz is of monstrous proportions. Yet Lifschultz has been unable to produce plausible evidence that supports its allegations."
 In addition to dismissing the case, Herlong granted every motion by CF and the other defendants that challenged Lifshultz' allegations, including dismissing the testimony of Glenn Hall, a former truck driver, and Ralph Picardo, a convicted perjurer. Herlong ruled their testimony was nothing more than hearsay, consisting "primarily of gossip and rumors passed on to them by often unidentified individuals."
 Donald E. Moffitt, president and chief executive officer of Consolidated Freightways Inc., said the company had always felt the case was a sham in which shareholders were victimized.
 "We are obviously pleased with the court's decision, which is a total validation of our position with respect to the ludicrous and irresponsible allegations made by David Lifschultz.
 "Given the current legal system in this country, however, total validation does not equate with total victory. For more than five years, we have had to commit significant time and approximately $5 million defending ourselves against baseless charges. This is a burden unfortunately borne by the shareholders to whom we are committed to delivering value," Moffitt said.
 He said that only an out-dated, anachronistic legal system would allow such a spurious case to remain active for so long.
 "This case was never anything more than a stock market play. David Lifschultz formed a corporation whose only asset was a deep-pockets antitrust lawsuit that he shamelessly hyped at the detriment to our shareholders," Moffitt said.
 He complimented Judge Herlong, who inherited the case earlier this year and pledged to resolve it by year's end.
 "Judge Herlong's alacrity should serve as an example throughout the federal judicial system," Moffitt said.
 The company said it would evaluate whether to seek damages against Lifschultz for payment of $5 million in legal and other expenses to defend itself.
 Consolidated Freightways Inc. is a diversified freight transportation company with businesses in long-haul trucking, regional trucking, air freight, intermodal services, custom brokerage and logistics management.
 -0- 10/30/92
 /CONTACT: J.R. Allen of Consolidated Freightways, 415-494-2900/
 (CNF) CO: Consolidated Freightways Inc. ST: California IN: TRN SU:


TM -- SJ004 -- 7306 10/30/92 16:40 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 30, 1992
Words:542
Previous Article:CHECKERS GRAND OPENING HALLOWEEN CELEBRATION SCHEDULED FOR TOMORROW
Next Article:SALOMON BROS. MTG. SECS. VII SERIES 1992-6 RATED 'AAA/AA' BY FITCH --FITCH FINANCIAL WIRE --
Topics:


Related Articles
CORRECTION TO ROBERT JAUNICH II ELECTED A DIRECTOR OF CONSOLIDATED FREIGHTWAYS
CONSOLIDATED FREIGHTWAYS DECLARES QUARTERLY DIVIDEND ON PREFERRED STOCK
U.S. JUDGE RULES IN FAVOR OF ROADWAY EXPRESS IN ANTITRUST LAWSUIT
CONSOLIDATED FREIGHTWAYS: ANTITRUST LAWSUIT AGAINST CONSOLIDATED FREIGHTWAYS, OTHERS, IS DISMISSED
YELLOW FREIGHT ANNOUNCES FAVORABLE JUDGMENT IN ANTITRUST CASE
CONSOLIDATED FREIGHTWAYS DECLARES QUARTERLY DIVIDEND ON PREFERRED STOCK
CONSOLIDATED FREIGHTWAYS DECLARES QUARTERLY DIVIDEND ON PREFERRED STOCK
LIFSCHULTZ APPEAL DENIED
LIFSCHULTZ APPEAL DENIED
COURT DISMISSES ACTION BY LIFSCHULTZ AGAINST ROADWAY ET AL.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters