Freight Recession or Rigged Game? Carriers Sue Major Brokers
Six family-owned trucking companies have filed a civil RICO lawsuit against C.H. Robinson and Total Quality Logistics, alleging the freight brokers worked with illegal “chameleon” carriers to secure lower rates and push compliant motor carriers out of the market.
Complaint alleges coordinated carrier network
The lawsuit claims C.H. Robinson and TQL directed long-haul freight to “fly-by-night” carriers operating through the Super Ego network. According to the complaint, some of those carriers allegedly used different corporate identities, ownership structures or operating authorities to continue hauling freight despite regulatory violations.
The plaintiffs contend that the brokers’ alleged relationships with those carriers allowed freight to move at rates legitimate trucking companies could not match. The carriers argue that the practice reduced their access to business while helping sustain unlawful operations in the broader freight market.
The complaint identifies several instances in which the plaintiffs say they lost freight opportunities. It alleges that EOS, Western Flyer, IWX and Chestenson were priced out of shipments moving to and from Graphic Packaging International’s mill in Texarkana, Texas.
Carriers seek damages under civil RICO law
The six trucking companies are pursuing the case under the federal Racketeer Influenced and Corrupt Organizations Act. They allege that the brokers participated in a coordinated relationship with illegal carriers and benefited from the resulting lower transportation rates.
The lawsuit follows broader concerns across the trucking industry about carrier vetting, insurance costs, maintenance expenses and the financial pressure facing small and midsize fleets. The plaintiffs argue that choosing low-cost carriers with questionable operating histories can shift risks involving missed appointments, cargo damage and other service failures onto shippers and transportation providers.
Defendants dispute allegations
C.H. Robinson has said freight rates are determined by market supply and demand. The company also said it intends to defend the lawsuit vigorously and pursue counterclaims.
TQL’s response to the complaint was not immediately established in the material available for this report. The allegations in the lawsuit have not been proven in court, and the defendants have not been found liable in this case.
Case adds to broker-liability debate
The lawsuit comes as brokers and shippers face increased scrutiny over carrier selection and safety oversight. C.H. Robinson is also involved in a separate Texas case stemming from a fatal truck crash, in which a jury returned a verdict exceeding $600 million and found the broker could be treated as a carrier for purposes of that case. That litigation is distinct from the RICO complaint filed by the six trucking companies.
The new case could add to ongoing legal debate over the responsibilities of freight brokers when selecting and monitoring motor carriers. For now, the court will determine whether the plaintiffs’ allegations meet the requirements to proceed under civil RICO law.
