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Aramex objects to $40m lawsuitMENA

Aramex objects to $40m lawsuit

Dubai’s Aramex is fighting back after being hit with a flaming hot $40m lawsuit by a Moroccan court.

The logistics firm is going to launch an appeal after the court ruled in favor of one of its customers who filed for damages and loss of goods. The case was filed after a fire broke out at Aramex’s warehouse in Casablanca last September.

Earlier in February, Aramex reported a fall of more than 40% in net profit for 2020 due to higher costs, which were impacted by this incident in Morocco as well as another warehouse incident in Lebanon last August.

why it matters
Aramex reported record-high revenue numbers (around $1.5b) in 2020 due to the surge in e-commerce (and therefore package deliveries). So, though losing the case would give Aramex a dent in its balance sheet, current consumer trends just might offset it.