RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased XPO Logistics, Inc. (“XPO” or the “Company”) (NYSE: XPO) securities between February 26, 2014 and December 12, 2018, inclusive (the “Class Period”).
XPO shareholders may, no later than February 12, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of XPO and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint filed in this class action alleges that throughout the Class Period, Defendants made materially 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 asserting 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.” Specifically, Spruce Point reported that it had discovered, 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.” On this news, XPO’s share price fell $15.77 per share, or more than 26%, to close at $44.50 on December 13, 2018, thereby injuring investors.
If you are a member of the class, you may, no later than February 12, 2019, request that the Court appoint you as lead plaintiff of the class. 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. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.