Company: U.S. Xpress Enterprises, Inc.
Class Period: June 14, 2018 — November 1, 2018
Court: U.S.D.C. - Eastern District of Tennessee
A shareholder class action lawsuit has been filed against U.S. Xpress Enterprises, Inc. (“U.S. Xpress”) on behalf of investors who purchased shares of the Company’s stock pursuant or traceable to the Company’s initial public offering (“IPO”) of common stock.
On or around June 14, 2018, U.S. Xpress completed its IPO of common stock, selling over 18 million shares of stock to investors at $16.00 per share, for proceeds of approximately $288 million.
The complaint alleges that the defendants made false and misleading statements to investors in connection with the Company’s IPO. Specifically, the complaint alleges that the IPO offering materials failed 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; (3) U.S. Xpress failed to stay informed regarding two large liability events; and (4) U.S. Xpress’s cost per mile for driver wages and independent contractors was exceeding the Company’s internal expectations
According to the complaint, on November 1, 2018, U.S. Xpress reported disappointing quarterly financial and operational results, and disclosed: (i) how unusual shipping patterns had impacted the Company; (ii) how market challenges for drivers resulted in a year-to-year tractor count decrease; (iii) higher driver wages and independent contractor costs; (iv) lower than expected recruitment levels; and (v) a higher insurance expense. Following this news, shares of the Company’s stock fell $3.04 per share, to close on November 2, 2018 at $7.10 per share – over 55% lower than the price of the shares at the time of the IPO.
U.S. Xpress investors are encouraged to contact Kaskela Law LLC at (888) 715 – 1740, or by completing the information form on this page, for additional information about this action and their legal rights and options.