XPO Class Action Lawsuit: Bernstein Liebhard LLP Announces That a Securities Class Action Lawsuit Has Been Filed Against XPO Logistics, Inc. – XPO
NEW YORK, Dec. 20, 2018 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of those who purchased or acquired the securities of XPO Logistics, Inc. (“XPO” or the “Company”) (NYSE: XPO) between February 26, 2014 and December 12, 2018, both dates inclusive (the “Class Period”). The lawsuit seeks to recover XPO shareholders’ investment losses.
If you purchased XPO securities, and/or would like to discuss your legal rights and options, please visit XPO Shareholder Class Action Lawsuit or contact Daniel Sadeh toll free at (877) 779-1414 or firstname.lastname@example.org.
According to the lawsuit, throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose that: (1) XPO’s highly touted aggressive M&A strategy had yielded only minimal returns to the Company; (2) 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 (3) as a result, the Company’s public statements were materially false and misleading at all relevant times.
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 [the Company’s] 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 liabilities, and aggressive amortization assumptions: all designed to portray glowing ‘Non-GAAP’ results.” The Spruce Point 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.” Spruce Point also reported 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.”
On this news, XPO’s stock fell $15.77 per share or approximately 26% to close at $44.50 per share on December 13, 2018, damaging investors.
If you wish to serve as lead plaintiff, you must move the Court no later than February 12, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased XPO securities, and/or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/xpo-logistics-inc-xpo-lawsuit-class-action-fraud-stock-101/ or contact Daniel Sadeh toll free at (877) 779-1414 or email@example.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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