United Parcel Service has settled a high-profile racial discrimination lawsuit brought by a former driver, ending a multi-year federal dispute that had produced a large jury award before most punitive damages were vacated on appeal. The settlement, whose financial terms were not disclosed, removes the uncertainty of a potential retrial and related legal expenses. The case had raised questions about UPS's employment practices and reputational risk, and its resolution allows management to refocus on network reconfiguration and cost reduction plans. UPS shares recently traded at $113.67, up 12.5% year to date.
United Parcel Service IncSettlement removes legal uncertainty and reputational risk, allowing focus on operations.