UPDATE 2-ADM sues US railroads over fuel surcharges

Wed Mar 26, 2008 10:49pm GMT
 
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CHICAGO, March 26 (Reuters) - Archer Daniels Midland Co (ADM.N: Quote, Profile, Research), a major food processor, has filed suit against five major U.S. railroads, alleging they schemed to fix fuel surcharges, according to court documents.

ADM has paid more than $250 million in fuel surcharges since 2003 and is seeking treble damages, according to the lawsuit filed on Tuesday in Minnesota District Court. ADM moves millions of tonnes of corn, soybeans and other agricultural products using rail lines each year.

ADM confirmed it filed the lawsuit but had no comment.

The suit was filed against CSX Transportation Inc, Burlington Northern Santa Fe Corp (BNI.N: Quote, Profile, Research), Union Pacific Corp (UNP.N: Quote, Profile, Research), Norfolk Southern Corp (NSC.N: Quote, Profile, Research) and Kansas City Southern (KSU.N: Quote, Profile, Research).

CSX Transportation is a subsidiary of CSX Corp (CSX.N: Quote, Profile, Research).

A spokesman for Union Pacific said the company had not yet seen the lawsuit. No one was immediately available to comment at Kansas City Southern or Norfolk Southern.

CSX said it believed its fuel surcharges have always complied with all laws and regulations, said spokesman Garrick Francis.

Burlington Northern Santa Fe also denied the allegations.  Continued...

 

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