FedEx is in hot water with the company facing a class-action lawsuit accusing the company of rolling back the odometers on vehicles it is selling.

FedEx operates a fleet of some 200,000 vehicles worldwide. As the company cycles through vehicles, it auctions off the old ones. According to KTNV Las Vegas, FedEx has been rolling back odometers on vehicles without the proper disclosures.

The issue was discovered by Tom Layton, a commercial truck dealer in Henderson, Nevada. Layton first realized there was an issue in 2017 when he sold a former FedEx Freightliner truck to a FedEx contractor.

“About a month after the sale, the FedEx contractor contacted me and said, ‘hey! What are you trying to pull here? And I said, ‘what’s wrong?’ And he said, ‘I took this into Freightliner and had the vehicle hooked up to the computer. And it has over 400,000 miles. And your odometer says 180,000 miles’.”

Layton investigated “…and through our research, found out that the odometer was changed by FedEx, not by any car dealership,” Layton said.

The revelation by Layton and KTNV Las Vegas’ “13 Investigates” led to a class action lawsuit that was filed in New Jersey last week. The lawsuit accuses FedEx of failing to disclose odometer replacements — which is required by federal law — or resetting the new odometers to the vehicles’ actual mileage.

Layton: “They’re replacing the odometer with one, starting it back at zero. And running 100, 150, 180-thousand miles on it and then selling it.” 13 Investigates: “And there’s no disclosure in the paperwork to let you know how to do the math yourself?” Layton: “None.”

The consequences have been disastrous for some buyers of aftermarket FedEx trucks, with new owners shelling out big bucks to fix problems the vehicles should not have had at their stated mileage. KTNV Las Vegas reports at least one instance where a food truck owner had to go out of business after finding out his truck needed an engine replacement.

If the plaintiffs are successful in proving their case, it could be a costly lesson for FedEx and its fleet management company, Holman Fleet Leasing.