Robbins Arroyo LLP: XPO Logistics, Inc. (XPO) Misled Shareholders According to Class Action
SAN DIEGO & GREENWICH, Conn.--(BUSINESS WIRE)--Dec 21, 2018--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of XPO Logistics (NYSE: XPO) filed a class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between February 26, 2014 and December 12, 2018. 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-inc/
XPO Accused of Dubious Tax Accounting To Cover Financial Strain
According to the complaint, 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.” CEO and Chairman of the Board Bradley Jacobs’ tenure at XPO has been characterized by an aggressive mergers and acquisition strategy. On August 2, 2017, Jacobs announced plans to earmark up to $8 billion for additional acquisitions. On December 12, 2018, Spruce Point Capital Management published a report asserting that XPO was covering financial irregularities, and that 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.
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View source version on businesswire.com:https://www.businesswire.com/news/home/20181221005611/en/
CONTACT: Leonid Kandinov
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
(619) 525-3990 or Toll Free (800) 350-6003
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA CONNECTICUT
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Arroyo LLP
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PUB: 12/21/2018 07:37 PM/DISC: 12/21/2018 07:36 PM