UPS Fair Fund

The purpose of the Plan Notice is to inform you that you may be eligible to share in the proceeds of the UPS Fair Fund. To be potentially eligible to share in the UPS Fair Fund, you must file a Claim Form in accordance with the steps set forth in the Plan Notice and in the Plan of Distribution (the “Plan”) approved by the Securities and Exchange Commission (“SEC” or “Commission”).

A copy of the Plan Notice can be found here.

On November 22, 2024, the Commission issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (the “Order”) against United Parcel Service, Inc. (the “Respondent” or “UPS”). The Commission found that UPS failed to adhere to the basic accounting principle that the “fair value” of an asset is the price that would be received in the sale of that asset in an orderly transaction between market participants. UPS’s failures resulted in material misrepresentations to investors regarding its earnings and other reported items and activities.

According to the Order, in 2019, UPS’s corporate strategy group conducted an analysis of UPS Freight (“Freight”). Although UPS was carrying the business on its balance sheet at $1.4 billion, the 2019 analysis, which was available prior to the company’s annual goodwill impairment test, concluded Freight was likely to sell for only about $350 million to $650 million and reflected that the nearly $500 million of goodwill associated with Freight was impaired. The Commission found that when conducting the goodwill impairment testing required by Generally Accepted Accounting Principles (“GAAP”) in 2019, UPS ignored the company’s own assessment of Freight’s fair value. Instead, it relied on a valuation estimate of $2 billion prepared by an external consultant to support the carrying value UPS had assigned to Freight without giving the consultant the information it needed to fairly value the business. The Commission found that UPS relied on this valuation and did not record a goodwill impairment. Commission staff economists calculated that UPS’s failure to properly record a goodwill impairment caused UPS’s share price to be artificially inflated and UPS’s bond yields to be artificially depressed during the Relevant Period.

Equity investor losses occurred when UPS publicly disclosed on January 25, 2021, that it had reached an agreement to sell Freight for $650 million less than its $1.3 billion carrying value. Equity investors who had purchased the shares when the carrying value was misstated and then sold once the agreement was disclosed were harmed because they purchased shares at inflated prices. Bond investor losses occurred throughout the Relevant Period as bondholders received a lower yield than they otherwise would have.

The Commission ordered the Respondent to pay a $45,000,000 civil money penalty to the Commission. The Commission also created the Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty collected can be distributed to harmed investors (the “UPS Fair Fund” or “Fair Fund”).

The Respondent has paid in full. The Fair Fund has been deposited in a Commission-designated account at the United States Department of the Treasury, and any accrued interest will be added to the Fair Fund.

To qualify for a payment from the UPS Fair Fund, you must satisfy certain eligibility criteria that are described in detail in the Plan. The Plan can be found under the Important Documents page or on the Commission’s public website at https://www.sec.gov/litigation/fairfundlist.htm. You can also request a copy of the Plan by calling the Fund Administrator at 877-417-7404 or by emailing info@upsfairfund.com.

Eligible Claimants are individuals and entities, or their lawful successors, who purchased or acquired United Parcel Service (“UPS”) Class A and Class B common stock (“Equity Securities”) and certain United Parcel Service bonds (“Debt Securities”) during the period between October 22, 2019, and January 24, 2021, inclusive. Excluded Parties, which are described in paragraph 16 of the Plan, are not eligible to participate. Finally, your approved transactions must calculate to a Recognized Loss as calculated under the Plan and, to receive a payment, your Distribution Payment must equal or exceed $25.00.

PLEASE NOTE: RECEIPT OF THE PLAN NOTICE DOES NOT MEAN THAT YOU ARE AN ELIGIBLE CLAIMANT AS THAT TERM IS DEFINED IN THE PLAN.

You are excluded from participation in the UPS Fair Fund if you are an Excluded Party as defined in paragraph 16 of the Plan. Excluded Parties include:

1. The Respondent;
2. Present or former officers or directors of Respondent or any assigns, creditors, heirs, distributees, spouses, parents, dependent children or controlled entities of any of the foregoing Persons or entities;
3. Any employee or former employee of the Respondent or any of its affiliates who has been terminated for cause or has otherwise resigned, in connection with the conduct described in the Order;
4. Any Person who, as of the Claims Bar Date, has been the subject of criminal charges related to the conduct described in the Order or any related Commission action;
5. Any firm, trust, corporation, officer, or other entity in which Respondent has or had a controlling interest;
6. The Fund Administrator, its employees, and those Persons assisting the Fund Administrator in its role as the Fund Administrator; or
7. Any purchaser or assignee of another Person’s right to obtain a recovery from the Fair Fund for value; provided, however, that this provision shall not be construed to exclude those Persons who obtained such a right by gift, inheritance or devise.

On May 22, 2026, the Commission appointed Epiq Class Action & Claims Solutions, Inc. (“Epiq”) as the Fund Administrator.

“Relevant Period” means the period of time between October 22, 2019, and January 24, 2021, inclusive. October 22, 2019, is the filing date of UPS’s first misleading Form 8-K in which it did not comply with Generally Accepted Accounting Principles (“GAAP”) in disclosing or properly accounting for a goodwill impairment of one of its business units, UPS Freight (“Freight”). January 24, 2021, is the eve of UPS’s public disclosure that it had reached an agreement to sell Freight for $650 million less than its carrying value.

The Commission ordered UPS to pay a $45,000,000 civil money penalty to the Commission. The Commission also created the Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalty collected can be distributed to harmed investors. The Respondent has paid in full. The Fair Fund has been deposited in a Commission-designated account at the United States Department of the Treasury, and any accrued interest will be added to the Fair Fund.

To participate in the Fair Fund, you must timely submit a completed and signed Claim Form with supporting documents. Claim Forms can be submitted electronically on the Submit a Claim tab of this website. Paper submissions must be mailed to:

A Claim Form was included with the Plan Notice and is available for download here. If you do not complete and timely submit a Claim Form, you will not be considered for eligibility to receive a Distribution Payment under the Plan.

The completed and signed Claim Form, with supporting documentation, must be postmarked (if mailed) on or before January 10, 2027, or submitted electronically by 11:59 p.m. Eastern Time by January 10, 2027. If you fail to submit a Claim Form by January 10, 2027, you will not be eligible to participate in the distribution of the UPS Fair Fund.

Please note that filing a Claim Form does not assure that you will share in the proceeds of the Fair Fund. A claimant’s eligibility for a Distribution Payment under the Plan will be determined by the Fund Administrator in accordance with the Plan.

You must document each transaction that you include on your Claim Form. Acceptable forms of supporting documentation include, but are not limited to, the following:

1. Trade confirmation slips from brokerage firms that list the security name, the name of the beneficial owner, the type of transaction, the date of the transaction, the number of shares, and the total amount of the transaction; or
2. Monthly statements from brokerage firms that detail all activity within a month.

Acceptable documentation must include the name of the owner or owners of the account for which you are filing a claim, the name of the broker through whom the Securities were traded, trade date, number of shares purchased, acquired and/or sold, and price paid (excluding brokers’ commissions, taxes and fees).

Acceptable documentation includes contract notes, brokers’ confirmation slips, account activity pages from brokers’ computer printouts (including the front page), or account activity pages from brokers’ monthly statements (including the front page), if those statements contain the required information. Letters from your broker are acceptable only if they are on the brokers’ letterhead and contain the required information listed above. Your own records or certificates DO NOT constitute acceptable documentation. We cannot preapprove any documentation as acceptable without seeing it first.

Depending on how you acquired the Securities, you can generally obtain the necessary documentation to submit with a Claim Form from

1. your broker;
2. your tax advisor; and/or
3. the person/party from whom you purchased, or through whom you sold, the security.

Acceptable supporting documentation must be included with your completed Claim Form or your claim may be rejected.

Most brokerage firms and financial institutions assign account numbers to your account for easier reference. This number is typically included on the statements you receive. Please include your account number in Part II of the Claim Form.

The deadline to submit a completed and signed Claim Form with the necessary documentation is January 10, 2027. The Claim Form must be postmarked if sent by U.S. mail on or before January 10, 2027, or received electronically by 11:59 p.m. Eastern Time by the Fund Administrator (Epiq) by this date.

Yes. If your Claim Form is deficient, you will receive a Deficiency Notice setting forth the reason(s) why the claim is deficient and advising you of the opportunity to cure such deficiency.

Until all claims have been fully processed, it is not possible to determine the amount of any individual payment because the amount will depend on a variety of factors, including the number of valid claims processed and the details of your specific investment(s). For a claim to be paid, the Distribution Payment must equal or exceed $25.00.

As a long-established firm, Epiq's electronic systems, software applications, and employee and operational protocols are all designed to protect and secure the case information provided to us. Further, Epiq is obligated to fulfill the security requirements mandated by the various court jurisdictions and governmental entities that oversee the various types of cases it administers.

You may contact the Fund Administrator by calling toll-free 877-417-7404, sending an email to info@upsfairfund.com, or by writing to P.O. Box 3968, Portland, OR 97208-3968 for more information.

1. United Parcel Service, Inc. Common Stock A: CUSIP 911312205; ticker symbol UPS.
2. United Parcel Service, Inc. Common Stock B: CUSIP 911312106; ticker symbol UPS.
3. United Parcel Service, Inc. bonds (Senior Notes):