NewsStocksFR8 Solutions settles RICO case with 22 drivers over alleged $7,000 trucking rate gap

FR8 Solutions settles RICO case with 22 drivers over alleged $7,000 trucking rate gap

Author: FreightWaves·

Key Takeaways

  • •FR8 Solutions and 22 independent drivers settled a federal civil RICO case in Florida federal court.
  • •The court dismissed the lawsuit with prejudice on July 28, preventing the claims from being refiled.
  • •The drivers alleged FR8 used settlement and dispatch records that understated revenue and reduced percentage-based pay.
  • •The settlement amount was not disclosed in court filings.
  • •The judge’s order allows either side 60 days to ask for a final order or reopen the case.
FR8 Solutions settles RICO case with 22 drivers over alleged $7,000 trucking rate gap

FR8 Solutions and 22 independent drivers have settled a federal civil RICO lawsuit in which the drivers accused the trucking company of altering rate sheets and concealing revenue on hauled loads. On July 28, the U.S. District Court for the Middle District of Florida dismissed the case with prejudice, meaning the claims cannot be refiled. Court filings do not disclose the settlement's financial terms.

Civil RICO claims are brought under a 1970 statute originally aimed at organized crime, and the law's private-action provision allows prevailing plaintiffs to seek treble damages and attorneys' fees. Plaintiffs and defendants filed a joint notice of settlement on July 27, telling 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 operated under agreements that promised drivers 88% of each load's linehaul rate. Percentage-of-revenue pay is a common arrangement for owner-operators, alongside per-mile rates, and it leaves drivers relying on the carrier's own settlement and dispatch records for the revenue figure that determines each payment. According to the complaint, company records showed smaller rates than FR8 actually received. Drivers said FR8 supplied settlement statements and dispatch documents that understated the company's revenue, and the lawsuit states that 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 rate of $2,400, while the complaint claims the company actually received $2,500. A second shipment ran from Del Rio, Texas, to Kansas City, Kansas. For that move, the drivers claim FR8 showed $8,000 but received $15,000. Under the drivers' claimed 88% formula, the $7,000 difference represented $6,160 — a measure of how much a single disputed rate gap can be worth on one load.

The 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, arguing the agreements set compensation through separately negotiated rates for each truckload. Judge William Young rejected that reading at the dismissal stage, writing that it could produce an absurd result. In a February order, Young allowed claims against FR8 and Kajdic to continue.

The court also retained allegations involving messages the drivers described as threats. Kajdic argued Google Translate distorted messages originally written in Bosnian. Young made no final findings about the drivers' factual claims, and the settlement ends the case before those allegations could be tried.

FMCSA records list FR8 Solutions as an active interstate motor carrier. The Jacksonville, Florida, company reports 65 power units and 78 drivers, as well as 4.72 million vehicle miles during 2025. Its website markets brokerage, transportation and cross-border services, and advertises that owner-operators can take home 88% of the agreed rate — the same split at the center of the drivers' claims.