Robbins Arroyo LLP: XPO Logistics, Inc. (XPO) Sued for Misleading Investors
Business Wire 3-Apr-2019 5:58 PM
Shareholder rights law firm Robbins
Arroyo LLP reminds purchasers of XPO Logistics (NYSE:XPO) that a
class action complaint was filed 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-apr-19/
XPO Accused of Dubious Tax Accounting To Cover Financial Strain
According to the complaint, XPO has grown from an aggressive mergers and
acquisition strategy. Casting doubt as to the legitimacy of the
company's growth, 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, and still trades significantly below its class period high.
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/20190403005883/en/
