A lawsuit was filed on behalf of investors in FedEx Corporation (NYSE: FDX) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 08/08/2019 -- An investor, who purchased shares of FedEx Corporation (NYSE: FDX), filed a lawsuit over alleged violations of Federal Securities Laws by FedEx Corporation in connection with certain allegedly false and misleading statements.
Investors who purchased shares of FedEx Corporation (NYSE: FDX) have certain options and for certain investors are short and strict deadlines running. Deadline: August 26, 2019. NYSE: FDX investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
In July 2016, FedEx significantly expanded its international operations through its $4.8 billion acquisition of TNT Express N.V. ("TNT"), a Netherlands-based logistics company with operations concentrated in Europe.
On June 28, 2017, FedEx Corporation announced that the worldwide operations of the Company's TNT Express unit were significantly affected by a cyberattack known as Petya. The timing of the attack was particularly problematic for FedEx, as TNT's systems were paralyzed during the critical period involving the integration of TNT with the Company's legacy European operations.
On July 17, 2017, FedEx Corporation filed its 10-K with the U.S. Securities and Exchange Commission.
In a press release coinciding with the filing, FedEx Corporation stated that, due to Petya, "customers are still experiencing widespread service and invoicing delays, and manual processes are being used to facilitate… We cannot estimate when TNT services will be fully restored." In addition, FedEx Corporation noted that the "financial impact" of the attack will likely be material, as the Company does not have cyber or other insurance to cover situations of this nature.
The truth about TNT's deteriorating business was revealed through a series of disclosures culminating on December 18, 2018. On that date, FedEx Corporation reported a large profit miss for its second fiscal quarter ended November 30, 2018. FedEx Corporation attributed the disappointing results to lower package volumes in Europe and a negative shift in TNT's product mix to lower margin freight business following the Cyberattack—which had occurred well over a year ago. FedEx Corporation also lowered its fiscal 2019 earnings guidance and announced its main TNT synergy target would no longer be achievable by fiscal year 2020.
The plaintiff claims that between September 19, 2017 and December 18, 2018, the defendants made false and misleading statements and/or failed to disclose that TNT's overall package volume growth was slowing as TNT's large customers permanently took their business to competitors after the Cyberattack, that as a result of the customer attrition, TNT was experiencing an increased shift in product mix from higher-margin parcel services to lower-margin freight services, that the anticipated costs and timeframe to integrate and restore the TNT network were significantly larger and longer than disclosed, that FedEx was not on track to achieve TNT synergy targets, and that as a result of these undisclosed negative trends and cost issues, FedEx's positive statements about TNT's recovery from the Cyberattack, integration into FedEx's legacy operations, customer mix, customer service levels, profitability, and prospects lacked a reasonable basis.
Shares of FedEx Corporation (NYSE: FDX) declined from $274.66 per share in early 2018 to as low as $150.94 per share on December 26, 2018.
Those who purchased shares of FedEx Corporation (NYSE: FDX) have certain options and should contact the Shareholders Foundation.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.