Robbins Arroyo LLP: XPO Logistics, Inc. (XPO) Sued for Misleading Investors
SAN DIEGO & GREENWICH, Conn.--(BUSINESS WIRE)--May 15, 2019--
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, LKandinov@robbinsarroyo.com, 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.
View source version on businesswire.com:https://www.businesswire.com/news/home/20190515005742/en/
CONTACT: Leonid Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San Diego, CA 92122
(619) 525-3990 or Toll Free (800) 350-6003
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Arroyo LLP
Copyright Business Wire 2019.
PUB: 05/15/2019 12:25 PM/DISC: 05/15/2019 12:25 PM