SAN DIEGO & GREENWICH, Conn.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24XPO&src=ctag” target=”_blank”gt;$XPOlt;/agt; lt;a href=”https://twitter.com/hashtag/ClassAction?src=hash” target=”_blank”gt;#ClassActionlt;/agt;–Shareholder rights law firm Robbins
Arroyo LLP announces that an investor of XPO Logistics (NYSE: XPO)
has filed a shareholder derivative complaint against the company’s
officers and directors for breaches of fiduciary duties between February
26, 2014 through the present. XPO Logistics provides transportation and
logistics services domestically and internationally.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/xpo-logistics-may-19/
XPO’s Officers and Directors Accused of Misleading Investors About
Company’s Financial Condition
According to the complaint, since September 2011, XPO grew from an
aggressive and ill-advised mergers and acquisition strategy. XPO touted
its strategy and accompanying fast-paced growth through its publicly
issued financial statement. However, those financial statements
contained irregularities that conveniently disguised its true financial
state. On December 12, 2018, Spruce Point Capital Management started
casting doubt on the legitimacy of XPO’s growth by publishing a report
asserting that XPO was covering financial irregularities. It had
evidence to suggest XPO was utilizing dubious tax accounting methods and
aggressive amortization assumptions amongst other factors to portray
glowing ‘Non-GAAP’ results. By Spruce Point’s calculations, XPO’s
acquisitions had “generated $73m of cumulative adjusted free cash flow
in an expansionary economic period… [and is] indicative of a failed
business strategy yielding a paltry 1.2% return on invested capital.”
Following the publication of the Spruce Point report, XPO’s stock price
fell $15.77, or 26.17%, to close at $44.50.
XPO Logistics Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leonid Kandinov at
(800) 350-6003, [email protected],
or via the shareholder
information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
Contacts
Leonid Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San
Diego, CA 92122
[email protected]
(619)
525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
