FedEx files suit and cuts ties with the ground delivery contractor

FedEx Corp has cut its relationship with delivery contractors.

FedEx filed suit asking a federal judge to stop the contractor from spreading misinformation about its business.

Spencer Patton has 225 FedEx Ground routes that offer services to roughly 6,000 U.S. contractors.

Patton told that up to 35% of FedEx Ground delivery providers are at risk of financial failure.

He requested its leaders to improve compensation and has been rallying "peers to his cause."

"Really, what I've been advocating and really making the public aware of is that we're in enormous financial distress," Patton said

"We've seen our fuel prices double in a year. We've seen our wage rates up, our vehicle costs up," Patton also said.

"And I'm sounding the alarm that the risk of network interruption in FedEx Ground is as high as I've ever seen it.” he also added.

In its lawsuit, FedEx alleged that Patton is disparaging its Ground business through a series of false and misleading statements about its commercial activities.