Expeditors in court – another disconcerting lawsuit emerges

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So it comes: another legal headache that Seattle could have done without, as far as reputational risk is concerned.

Defendant Expeditors is now accused of “breach of contract, breach of the implied covenant of good faith and fair dealing, promissory estoppel, wrongful termination in violation of public policy”, according to a new filing lodged today, 7 February, in which an ex-staff member also alleges that: “Defendant failed to follow its own Code of Business Conduct (“Code”), subjected her [Boudreau] to unfair and retaliatory treatment, violated statutory requirements governing personnel records, and constructively discharged her after approximately eleven years of exemplary service.”

The plaintiff, Christina Boudreau, isn’t alone and there are “more [such cases] in the pipeline”, Premium sources insist, as “there could be some big developments” on the way.

Legal hurdles come after the $15.5bn-market-cap forwarder already attracted the headlines last month for various alleged wrongdoings, as we highlighted in our previous coverage:

– Spotlight on ‘no layoffs’ policy (16 Jan 2025)

– New motion in, new allegations emerge (21 Jan 2025)

The new case, again lodged with the District Court for the District of Massachusetts, is relevant, according to the plaintiff, who worked at Expeditors for about 11 years, because: “Despite her commitment, Expeditors subjected her to unethical practices, favoritism, and retaliatory conduct, culminating in her forced resignation on or about July 24, 2024.”

Just two days ago, Expeditors filed its reply regarding the separate Michael Carrabes case – as briefly flagged here.

It’s alleged in the latest case that “Expeditors’ misconduct” in internal dealings breached the code, as did the same two managers cited in ‘Michael Carrabes vs Expeditors‘.

According to the plaintiff in the latest case: “A central instance of Expeditors’ misconduct involved its requirement that Ms. Boudreau complete compliance trainings [on behalf of] the Regional Vice President responsible for her branch, Mr. Brian Carrabes [Michael Carrabes’s brother], who frequently neglected his responsibilities. With District Manager Tracy Peveri facilitating and encouraging this improper arrangement, Ms. Boudreau carried out approximately sixty training courses for Mr. Carrabes, most recently performing them on December 29, 2023, despite company policy prohibiting such behavior. No disciplinary action was taken against Mr. Carrabes or Ms. Peveri, leaving Ms. Boudreau feeling complicit under pressure”.

Furthermore, the plaintiff accuses district manager Peveri to have “explicitly encouraged Ms. Boudreau to ‘help’ Mr. Carrabes by completing his trainings on his behalf in order for their district to meet compliance deadlines” – and so Boudreau allegedly “felt pressured to comply because Ms. Peveri implied that failing to do so would reflect poorly on their district’s performance and would negatively affect her performance ratings”.

In the last instance of such purported behaviour, Boudreau “completed approximately nineteen PDC [Professional Development Center] compliance trainings for Mr. Carrabes”.

But here’s the thing, according to the plaintiff:

“Because the system logs the IP address and requires a full password, Expeditors could easily determine that Mr. Carrabes had not completed them himself. Despite this blatant violation of policy, Expeditors took no action.”

Moreover, the filing states: “Ms. Boudreau also witnessed and endured ongoing favoritism toward coworkers with personal ties to senior management. She was consistently denied fair opportunities, including promotions that were either not posted or deliberately manipulated to favor close associates of Ms. Peveri, such as Jenna Connors and Nancy Bowie.”

In particular, it’s alleged that: “Connors had previously worked part-time yet received full-time pay, was given a car allowance intended for traveling sales staff though she did not travel, and was promoted to Mr. Carrabes’ team without the position being advertised. Similarly, Ms. Bowie, who lacked relevant qualifications or extensive experience, was personally mentored and advanced by Ms. Peveri.”

Some of the other accusations brought forward by the lawsuit are also disturbing. 

For instance, the plaintiff “discovered” that a senior executive, part of the leadership team, and who has been referenced in our marketplace as a likely candidate for top post when Expeditors CEO after Jeff Musser retires, “publicly posted a vulgar meme on his Twitter account referencing ‘Mike Hawk’ (plainly read as ‘My Cock’)”. And the post, a copy of which is contained in the filing, regrettably “remained publicly visible”.

That, in isolation, may not seem very significant but Boudreau found “it deeply inappropriate and further evidence of a leadership culture that disregarded the Code’s supposed values of decorum and respect”.

And so the plaintiff “repeatedly raised concerns” about “unethical practices”.

However, as the allegations pile up ahead of discovery, instead of “conducting good-faith investigations”, Expeditors management allegedly “retaliated by obstructing her career advancement and subjecting her to unwarranted discipline”.

“Ultimately, Ms. Boudreau could not continue in such a toxic work environment and was forced to resign.”

Upon her initial appointment around 2013, and as a “continuing condition of employment”, Boudreau was required to review, acknowledge and annually recertify her compliance with Expeditors’ code of conduct, which is intended to function as more than “a mere internal policy; it operates as a set of binding obligations between Expeditors and its employees”.

The plaintiff also noted that “Expeditors has, in prior litigation, taken the position that the Code is legally binding”.