NEW YORK, May 09, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against U.S. Xpress Enterprises, Inc. (“U.S. Xpress” or the “Company”) (USX) and certain of its officers and directors. The class action, filed in United States District Court, Eastern District of Tennessee, Chattanooga, and indexed under 19-cv-00098, is on behalf of a class consisting of all persons and entities other than Defendants and their affiliates who purchased or otherwise acquired the publicly traded common stock of U.S. Xpress pursuant and/or traceable to the Company’s initial public offering completed in June 2018 (the “IPO”), seeking to recover compensable damages caused by Defendants’ violation under §§ 11 and 15 of the Securities Act of 1933 (the “Securities Act”).
If you are a shareholder who purchased U.S. Xpress securities during the class period, you have until May 10, 2019 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding Xpress’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: that a shortage of trucks was negatively impacting U.S. Xpress’s dedicated division; that (i) certain account shipping patterns had been performing differently than expected; that, as a result, (ii) utilization and driver retention and hiring were being negatively affected; that, as a result (iii) U.S. Xpress’s dedicated accounts, including one large account, were being negatively impacted; that, as a result (iv) U.S. Xpress’s over-the-road (sometimes referred to as “OTR”) division was providing continued support to the dedicated division; that: (i) U.S. Xpress failed to stay informed regarding two large liability events; that, as a result (ii) U.S. Xpress’s insurance claim expense was understated; and that U.S. Xpress’s cost per mile for driver wages and independent contractors was exceeding the Company’s internal expectations.
As a result of the foregoing, the statements contained in the Offering Documents were materially false and/or misleading and failed to state information required to be stated at all relevant times.
On November 1, 2018, U.S. Xpress issued a press release, also attached as Exhibit 99.1 to the Form 8-K filed with the SEC, 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 price of U.S. Xpress’s common stock declined from a close of $10.14 per share on November 1, 2018, to a close of $7.10 per share on November 2, 2018, a drop of approximately 29.98%.
At the date of the filing of this action, less than a year after the IPO, U.S. Xpress’s common stock trades at approximately $6.60 per share, a decline of roughly $9.40 per share, or nearly 59%, from the $16.00 IPO public price.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 9980