A federal appeals court has given Yellow Corporation another shot in its high-stakes legal fight with the Teamsters union. On November 5, 2025, the Tenth Circuit Court of Appeals reversed a lower court, saying Yellow can move forward with a $1.5 billion lawsuit against the union.

The dispute: Yellow, once one of America's largest trucking companies, shut down and filed for bankruptcy back in August 2023, putting about 30,000 people out of work. The company says the Teamsters blocked its plan to merge several of its carriers and change driver roles—moves Yellow says were needed to save the business.

• Yellow argues union leadership, led by Sean O’Brien at the time, intentionally kept them from making critical changes by not agreeing to a restructuring deal.
• The Teamsters claim Yellow’s problems were its own fault and call the lawsuit an attempt to blame someone else.

What happened in court: An earlier judge dismissed Yellow’s case, but the appeals court said that was a mistake and that Yellow should have been allowed to update its legal complaint with new claims.

Yellow says the Teamsters’ actions cost them $137 million when the union refused to go along with their plan for months, according to KXAN.

What's next: The case now goes back to the lower court, where Yellow will push ahead with its $1.5 billion claim. No trial date has been set yet.