UPS 2009 Annual Report Download - page 99

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UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
In January 2008, a class action complaint was filed in the United States District Court for the Eastern
District of New York alleging price-fixing activities relating to the provision of freight forwarding services. UPS
was not named in this case. On July 21, 2009, the plaintiffs filed a first amended complaint naming numerous
global freight forwarders as defendants. UPS and UPS Supply Chain Solutions are among the 60 defendants
named in the amended complaint. We intend to vigorously defend ourselves in this case. At this time, we have
not determined the amount of any liability that may result from these matters or whether such liability, if any,
would have a material adverse effect on our financial condition, results of operations, or liquidity.
Other Matters
We received grand jury subpoenas from the Antitrust Division of the U.S. Department of Justice (“DOJ”)
regarding the DOJ’s investigations into certain pricing practices in the air cargo industry in July 2006, and into
certain pricing practices in the freight forwarding industry in December 2007.
In October 2007, June 2008, and February 2009, we received information requests from the European
Commission (“Commission”) relating to its investigation of certain pricing practices in the freight forwarding
industry, and subsequently responded to each request. On February 9, 2010, UPS received a Statement of
Objections by the Commission. This document contains the Commission’s preliminary view with respect to
alleged anticompetitive behavior in the freight forwarding industry by 18 freight forwarders, including UPS. The
Statement of Objections enables the addressees to respond. Although it alleges anticompetitive behavior, it does
not prejudge the Commission’s final decision, as to facts or law (which is subject to appeal to the European
courts). We intend to vigorously defend ourselves in this proceeding.
We also received and responded to related information requests from competition authorities in other
jurisdictions.
We are cooperating with each of these inquiries.
At this time, we are unable to determine the amount of any liability that may result from these matters or
whether such liability, if any, would have a material adverse effect on our financial condition, results of
operations, or liquidity.
NOTE 9. SHAREOWNERS’ EQUITY
Capital Stock, Additional Paid-In Capital, and Retained Earnings
We maintain two classes of common stock, which are distinguished from each other by their respective
voting rights. Class A shares of UPS are entitled to 10 votes per share, whereas Class B shares are entitled to one
vote per share. Class A shares are primarily held by UPS employees and retirees, and these shares are fully
convertible into Class B shares at any time. Class B shares are publicly traded on the New York Stock Exchange
(NYSE) under the symbol “UPS.” Class A and B shares both have a $0.01 par value, and as of December 31,
2009, there were 4.6 billion Class A shares and 5.6 billion Class B shares authorized to be issued. Additionally,
there are 200 million preferred shares authorized to be issued, with a par value of $0.01 per share; as of
December 31, 2009, no preferred shares had been issued.
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