Among the major news on UK stocks, Royal Mail’s owner, International Distribution Services PLC (GB:IDS), has been hit with a new legal claim of £878 million over its bulk delivery services. The company has been accused of overcharging its customers, using its leading position in the bulk mail market. Following the news, IDS shares fell by 1.19% as of writing.
IDS is a British distribution company that provides postal and courier services.
IDS Faces Legal Trouble
Yesterday, Bulk Mail Claim Limited filed a claim against IDS on behalf of 290,000 customers who were overcharged due to the company’s practices. The claim asserts that the company’s anti-competitive practices have led to higher prices. The company’s bulk mail services are mainly used by organisations for bulk delivery of bills, letters, magazines, bank statements, etc.
According to Lewis Silkin, a UK-based law firm representing Bulk Mail, the objective of this legal action is to ensure Royal Mail is held accountable for its conduct and secure compensation for impacted customers.
This class action came as another blow to the company, which settled a £50 million fine imposed by Ofcom in 2018 for similar charges.
The latest legal drama also adds more troubles for the company after it recently agreed to sell its postal services brand, Royal Mail, to Czech billionaire Daniel Křetínsky for £3.57 billion. Křetínsky aims to reshape the company into a more advanced delivery business following challenges in recent years, including a significant decrease in service demand.
What is the Future Price of IDS Stock?
According to TipRanks, IDS stock has received a Hold consensus rating, backed by one Buy and three Hold recommendations. The IDS share price target is 349.93p, which is 9.4% above the current trading levels.
Year-to-date, IDS stock has gained 17.2% in trading.
