C.H. Robinson’s $604 million trucking verdict remains unconfirmed after six weeks

  • Dallas County judge Dianne Jones has not affirmed C.H. Robinson’s $604 million Lipe verdict.
  • C.H. Robinson expects manageable 2027 insurance increases and plans to pass most costs through freight rates.
  • C.H. Robinson is working with FMCSA on federal broker safe-harbor standards.

C.H. Robinson’s $604 million verdict in the Lipe v. Lupus Superior case remains unconfirmed more than six weeks after a Dallas County jury issued it, leaving the company awaiting Judge Dianne Jones’s decision before an appeal can proceed. Plaintiffs filed a formal request for entry of judgment last week. The case stems from a fatal 2021 crash in Jackson, Mississippi, involving a truck owned by Texas-based carrier Lupus Superior and hired by C.H. Robinson. The crash killed Lupus Superior driver Gorgonio Gonzalez and passenger Peyton Lipe, the lawsuit’s first named plaintiff. The jury assigned 45% of the blame to Gonzalez, 45% to Lupus Superior and 23% to C.H. Robinson, while also finding C.H. Robinson vicariously liable for Gonzalez’s share and effectively treating him as its employee. CFO Damon Lee said the company chose not to settle and expects to prevail on appeal. He said 98% of C.H. Robinson’s cases are dismissed or settled and that insurance costs and claims represent less than 50 basis points of gross revenue, with auto liability insurance accounting for about 25 basis points. C.H. Robinson expects 2027 insurance premiums to rise by a manageable amount, with most of the increase passed through freight rates. CEO Dave Bozeman said the company is working with the Federal Motor Carrier Safety Administration and the Department of Transportation on clearer broker safe-harbor rules. Citi upgraded the stock to buy from neutral, saying the final judgment could be less severe than the jury verdict. The shares fell from a 52-week high of $210.33 to a low of $141.63 after the verdict before closing Tuesday at just over $150. The executives also highlighted artificial intelligence gains, including a 60% increase in gross profit per employee, a roughly 30% reduction in headcount and higher shipments per employee.

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