What the lawsuit boils down to is that Convoy brokered loads to new entrants with zero safety rating, one of which lead to a fatality. This lawsuit was served a day prior to Convoy shutting down. I suspect that they know they’re screwed.
Imo this lawsuit is going to make brokerages like Uber, Coyote and all the others who don’t require any type of safety rating to now require it.
Any brokers on this forum that don’t require any safety ratings, you may want to follow along with this lawsuit and see how it unfolds.
I suspect that in the near future it’ll be somewhat of a difficult hurdle for new entrants.
On another note.. I read recently a report of a higher than usual percentage of new entrants getting put oos lately. The consensus was that these companies weren’t making enough money to repair their equipment.
Here’s an article on the Convoy lawsuit.
Convoy sued after claims its business model 'contributed to' fatal accident - The Loadstar
Convoy lawsuit and how it may affect the industry
Discussion in 'Freight Broker Forum' started by Concorde, Oct 23, 2023.
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Siinman, blairandgretchen, mtoo and 8 others Thank this.
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I think the Safety Rating is less the issue here (Also, something like 80% of all carriers don't have a safety rating for a variety of reasons, so the enforcement of that would need to increase) but more likely this from your linked article:
Without knowing what their safety standards were, a quick check of Prowheeler, the carrier in question, shows that he'd still be outside of my company's standards, nearly two years after their common authority was revoked, and that excluding the fatality. He's apparently still pending contract authority. It seems likely that they either didn't do their due diligence or didn't have a particularly good system in place for that, but again - don't know for sure.blairandgretchen Thanks this. -
How is the lawsuit even going to proceed since convoy is shut down and out of business and broke ?
so they have a trial two years from now and get a judgement ,
There isn’t going to be anything to collect . -
Siinman Thanks this.
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