DHL will pay $25 million to settle a national class-action suit by some 1,400 contractors stemming from payment disputes dating back to 1994, according to company officials and one of the lawyers representing one of the contractors.

The contractors alleged that glitches in the DHL computer system - a legacy from Airborne Express, which DHL bought in 2003 -- prevented certain types of shipments from being processed correctly, said R. Anthony Rupp III, a lawyer with the Buffalo firm of Rupp Baase who represented contractors involved in the case.

While linking data from shipments from across the country with confirmation information, the DHL system also mistakenly prevented any payment for those jobs, the lawsuit alleged.

DHL denies any such glitches in its computer system. "There are none," said Josh Frank, DHL vice president of legal.

The company agreed to the settlement, Frank said, because such class action lawsuits can be distracting an expensive.

In an internal memo to DHL managers obtained by Traffic World, the company said it had settled "to avoid prolonged and expensive litigation" with a one-time payout that it hopes "as many contractors as possible" will pursue.