XPO investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the first filed complaint, XPO provides transportation and logistics services in the United States, North America, France, the United Kingdom, Spain, Europe, Asia, and internationally, through its Transportation and Logistics segments. XPO offers its services to customers in various industries, such as retail, e-commerce, food and beverage, manufacturing, technology and telecommunications, aerospace and defense, life sciences, healthcare, medical equipment, and agriculture.
The first filed complaint alleges that, throughout the Class Period, defendants made false and misleading statements regarding XPO’s business, operational and compliance policies including touting the purported benefits of XPO’s acquisitions, describing acquisitions as one of the “three main components” of XPO’s corporate strategy.
According to the first filed complaint, on December 12, 2018, Spruce Point Capital Management (“Spruce Point”) published a report regarding XPO, entitled “Trucking Ridiculous; End of the Road”. The Spruce Point report asserted that a “forensic investigation” into XPO had revealed “financial irregularities that conveniently cover its growing financial strain and inability to complete additional acquisitions despite repeated promises.” Spruce Point reported that it had uncovered, among other issues, “concrete evidence to suggest dubious tax accounting, under-reporting of bad debts, phantom income through unaccountable M&A earn-out labilities, and aggressive amortization assumptions: all designed to portray glowing ‘Non-GAAP’ results.” Spruce Point also reported that “[i]n our opinion, XPO has used a nearly identical playbook from United Rentals leading up to its SEC investigation, executive felony convictions, and share price collapse.”
Following publication of the Spruce Point report, XPO’s stock price fell $15.77 per share, or 26.17%, to close at $44.50 on December 13, 2018.
The first filed complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) XPO’s highly touted aggressive M&A strategy had yielded only minimal returns to the company; (ii) XPO was utilizing improper accounting practices to mask its true financial condition, including, inter alia, under-reporting of bad debts and aggressive amortization assumptions; and (iii) as a result, XPO’s public statements were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than February 12, 2019 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
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