Long-haul carrier Gilbert Express and the Owner-Operator Independent Drivers Association on April 1 announced the settlement of a class-action suit OOIDA filed against the company in October 2000. Terms of the settlement were not announced.
OOIDA had filed the suit alleging that Gilbert’s owner-operator agreement violated certain federal truth-in-leasing regulations, and that drivers were forced to purchase insurance and communications equipment through the company, among other charges.
With the suit settled, Gilbert Express says it plans to complete its reorganization under Chapter 11 bankruptcy status. The company filed for bankruptcy protection last June, citing the expense and uncertainty of the lawsuit.
The settlement includes a commitment by Gilbert Express to use an owner-operator lease negotiated with OOIDA that complies with federal regulations. The settlement still must be approved by the Bankruptcy Court.