The International Brotherhood of Teamsters won a major victory against Yellow Corporation yesterday with the dismissal of the company’s frivolous $137 million lawsuit by U.S. District Court Judge Julie A. Robinson.

The lawsuit, Yellow Corporation et al., v. International Brotherhood of Teamsters et al., was a blatant attempt by Yellow Corp. to undermine the rights of workers and discredit the Teamsters. The union vigorously defended its position and challenged the meritless breach of contract claims filed by Yellow Corp. The court agreed with the union’s position that the lawsuit be dismissed.

“After years of corporate mismanagement, Yellow still never misses an opportunity to embarrass itself or bring further shame to what used to be one of America’s strongest freight carriers. As the Teamsters expected, the court saw right through Yellow’s PR stunt of a lawsuit,” said Teamsters General President Sean M. O’Brien. “Yellow’s greedy executives drove this company into the ground despite enormous, selfless sacrifice from its workforce for decades. This lawsuit represented management’s desperate, last-ditch attempt to save face — and they failed yet again.”

Despite taking $5 billion in wage and benefit concessions from rank-and-file Teamsters since 2019 and $700 million in a federal government bailout, Yellow Corp. filed for bankruptcy in August of last year, but not before paying out millions of dollars in bonuses to its failed executives.

Yellow Corp. enriched its attorney in the now-dismissed lawsuit, Marc Kasowitz of Kasowitz Benson Torres LLP, with more than $1 million in fees since Dec. 21, 2023. Meanwhile, Yellow Corp.’s attorneys with Kirkland & Ellis LLP are working to deny WARN Act claims from workers hurt by the company’s bankruptcy.

“While Yellow abuses the legal system by filing bogus claims against the Teamsters Union, the company’s lawyers are actively working to attack retirees and deny workers what they are legally owed,” said Teamsters General Secretary-Treasurer Fred Zuckerman. “We will continue to fight to ensure that workers are protected and the abuse by Yellow’s executives and their opportunist corporate lawyers is put to a stop.”