A Deadline is coming up on February 12, 2019 in the lawsuit for investors in XPO Logistics, Inc. (NYSE: XPO) and NYSE: XPO stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/06/2019 -- The Shareholders Foundation announces that a deadline is coming up on February 12, 2019 in the lawsuit filed for certain investors of XPO Logistics, Inc. (NYSE: XPO) over alleged securities laws violations by XPO Logistics, Inc.
Investors who purchased shares of XPO Logistics, Inc. (NYSE: XPO) have certain options and there are strict and short deadlines running. Deadline: February 12, 2019. NYSE: XPO stockholders should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
XPO Logistics, Inc., formerly known as Express-1 Expedited Solutions, Inc, provides transportation and logistics services in the United States, North America, France, the United Kingdom, Spain, Europe, Asia, and internationally. On September 2, 2011, Bradley S. Jacobs, through an equity investment led by Jacobs Private Equity, LLC, acquired a 71% ownership interest in Express-1. Jacobs assumed the roles of Chairman of the Board of Directors and Chief Executive Officer ("CEO") and renamed the Company "XPO Logistics, Inc." XPO Logistics, Inc has completed seventeen acquisitions since Jacobs took control of the Company, deploying $6.1 billion of capital. Jacobs's tenure at XPO has been characterized by aggressive mergers and acquisitions ("M&A") strategy. After Jacobs took control of the Company, Fortune Magazine noted that XPO "has grown from $177 million in sales in 2011 to $17 billion today, thanks largely to an incredible run of acquisitions." On August 2, 2017, Jacobs announced plans to earmark up to $8 billion for additional acquisitions.
The plaintiff says that prior to acquiring XPO Logistics, Inc., Jacobs had leadership roles in several other companies, having, inter alia, founded United Waste Systems, Inc. ("UWS") in 1989 and co-founded United Rentals, Inc. ("URI") in 1997, which eventually collapsed after an accounting scandal under Jacobs' leadership.
According to the complaint filed in the U.S. District Court for the District of Connecticut the plaintiff alleges on behalf of purchasers of XPO Logistics, Inc. (NYSE: XPO), that the defendants made false and/or misleading statements and/or failed to disclose that XPO Logistics' highly touted aggressive M&A strategy had yielded only minimal returns to the Company, that XPO Logistics, Inc. was utilizing improper accounting practices to mask its true financial condition, including, inter alia, under-reporting of bad debts and aggressive amortization assumptions, and that XPO Logistics, Inc. as a result, the Company's public statements were materially false and misleading at all relevant times.
On December 12, 2018, a report was published regarding XPO Logistics, Inc., entitled "Trucking Ridiculous; End of the Road". The report asserted that a "forensic investigation" into XPO Logistics, Inc. had revealed, "financial irregularities that conveniently cover [the Company's] growing financial strain and inability to complete additional acquisitions despite repeated promises." The report alleged 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 liabilities, and aggressive amortization assumptions: all designed to portray glowing 'Non-GAAP" results." The report further stated that "XPO insiders have aggressively reduced their ownership interest in the Company since coming public, and recently enacted a new compensation structure tied to 'Adjusted Cash Flow Per Share'—defined in such a non-standard way that it is practically meaningless." The report also stated that "[i]n our opinion, XPO has used a nearly identical playbook from [URI] leading up to its SEC investigation, executive felony convictions, and share price collapse."
Shares of XPO Logistics, Inc. (NYSE: XPO) declined from $115.25 per share in September 2018 to as low as $41.05 per share on December 13, 2018.
Those who purchased shares of XPO Logistics, Inc. (NYSE: XPO) have certain options and should contact the Shareholders Foundation.
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About Shareholders Foundation, Inc.
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.