A lawsuit was filed by an investor in shares of Kansas City Southern (NYSE:KSU) against certain directors of Kansas City Southern and current long-term NYSE:KSU investors should contact the Shareholders Foundation at firstname.lastname@example.org
San Diego, CA -- (SBWIRE) -- 06/18/2014 -- An investor who currently holds shares of Kansas City Southern (NYSE:KSU) filed a lawsuit against certain directors of Kansas City Southern over alleged breaches of fiduciary duties.
Investors who purchased shares of Kansas City Southern (NYSE:KSU) have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants exposed the company to potential hundreds of millions of dollar of losses. The plaintiff claims that defendants improperly touted Kansas City Southern's business prospects and issued aggressive financial guidance to demonstrate to the market and to the corporate debt rating agencies in particular, that the company's business metrics and financial prospects were deserving of an investment grade debt rating.
The plaintiff says that defendants' wrongdoing began to emerge on Jan. 24 this year, when Kansas City Southern issued a press release announcing disappointing 2013 fourth quarter fiscal results.
Furthermore, the plaintiff says that on February 18, 2014, the market learned that the lower house of the Mexican legislature had approved a new bill to increase rail competition in Mexico and that this legislation, if passed by Mexico's Senate, would give third-party companies access to KCS's currently exclusive freight and passenger rail networks
Shares of Kansas City Southern declined from $117.78 per share on January 23, 2014, to $94.91 per share on January 24, 2014 and continued to decline to as low as $91.12 per share on February 19, 2014.
In April 2014 a lawsuit was filed against Kansas City Southern over alleged securities laws violations. The plaintiff in that lawsuit claims that between October 18, 2013 and February 18, 2014 Kansas City Southern issued materially allegedly false and misleading statements regarding its financial performance and future prospects and allegedly failed to disclose that Kansas City Southern’s utility coal volumes and crude oil shipments were declining below forecasted levels during its 2013 fourth quarter, that the construction of the Company’s new Port Arthur crude oil terminal was experiencing operational difficulties which was delaying its completion and the Company’s realization of the benefits from the plant, that carloads in the Company’s Chemical & Petroleum shipments to Mexico had declined during the fourth quarter of 2013 due to operational issues with the Company’s customers in Mexico, that KCS’s anticipated ramp-up of its Mexican auto shipment business was not advancing to the degree Kansas City Southern led the market to believe, as the new plants were not coming on line and there would be a negligible benefit to Kansas City Southern’s revenues and profits in 2014, and that Mexican government officials were privately clamoring to take back or control the monopoly pricing power Kansas City Southern had by way of an agreement giving Kansas City Southern and another company exclusive use of tracks in Mexico.
Those who purchased shares of Kansas City Southern (NYSE:KSU) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego