NEW YORK, May 16, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in U.S. Xpress Enterprises, Inc. (“U.S. Xpress” or the “Company”) (USX) of the May 10, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in U.S. Xpress stock or options pursuant and/or traceable to the Company’s June 2018 Initial Public Offering (“IPO”) and would like to discuss your legal rights, click here: www.faruqilaw.com/USX. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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The lawsuit has been filed in the U.S. District Court for the Eastern District of Tennessee on behalf of all those who purchased U.S. Xpress common stock pursuant and/or traceable to June 2018 IPO (the “Class Period”). The case, Stein v. U.S. Xpress Enterprises, Inc. et al, No. 19-cv-00098 was filed on March 8, 2019 and has been assigned to Judge Travis Randall McDonough.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) a shortage of trucks was negatively impacting U.S. Xpress’s dedicated division; (2) certain shipping patterns had been performing differently than expected, negatively impacting utilization and driver retention and hiring, as well as U.S. Xpress’s dedicated accounts; (3) consequently, U.S. Xpress’s OTR division was providing continued support to its dedicated division; (4) U.S. Xpress failed to stay informed regarding two large liability events, resulting in an understatement of insurance claim expense; and (5) U.S. Xpress’s cost per mile for driver wages and independent contractors was exceeding the company’s internal expectations. When the true details entered the market, the lawsuit claims that investors suffered damages.
On November 1, 2018, U.S. Xpress issued a press release announcing the Company’s financial and operating results for the third fiscal quarter and nine months ending September 30, 2018. Therein, as well as during a conference call to discuss the results, U.S. Xpress disclosed how unusual shipping patterns were impacting its segments and how market challenges for drivers resulted in a year-to-year tractor count decrease. The Company and its executives also disclosed higher driver wages and independent contractor costs, lower than expected recruitment levels, and a higher insurance expense.
On this news, the Company's stock price fell from $10.14 per share on November 1, 2018 to $7.10 per share on November 2, 2018--a $3.04 or 29.98% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding U.S. Xpress’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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