NEW YORK, July 08, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in FedEx Corporation (“FDX” or the “Company”) (NYSE:FDX) of the August 26, 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 FedEx stock or options between September 19, 2017 and December 18, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/FDX. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased FedEx common stock between September 19, 2017 and December 18, 2018 (the “Class Period”). The case, Rhode Island Laborers' Pension Fund v. FedEx Corporation et al., No. 19-cv-05990 was filed on June 26, 2019, and has been assigned to Judge Ronnie Abrams.
In July 2016, FedEx significantly expanded its international operations through its $4.8 billion acquisition of TNT Express N.V. ("TNT"), a Netherlands-based logistics company with operations concentrated in Europe. On June 27, 2017, TNT's operations were crippled by a cyberattack known as NotPetya, which involved the spread of a malware virus throughout TNT's systems (the "Cyberattack"). TNT's systems were paralyzed during the critical period involving the integration of TNT with the Company's legacy European operations.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) TNT's overall package volume growth was slowing as TNT's large customers permanently took their business to competitors after the Cyberattack; (2) as a result of the customer attrition, TNT was experiencing an increased shift in product mix from higher-margin parcel services to lower-margin freight services; (3) the anticipated costs and timeframe to integrate and restore the TNT network were significantly larger and longer than disclosed; (4) FedEx was not on track to achieve TNT synergy targets.
After a series of partial disclosures about the business state of TNT, on December 18, 2018, FedEx reported a large profit miss for its second fiscal quarter ended November 30, 2018. FedEx attributed the disappointing results to lower package volumes in Europe and a negative shift in TNT's product mix to lower margin freight business following the Cyberattack-which had occurred over a year ago. The Company also lowered its fiscal 2019 earnings guidance and announced its main TNT synergy target would no longer be achievable by fiscal year 2020.
After the announcement, FedEx’s share price fell from $185.01 per share on December 18, 2018 to a closing price of $162.51 on December 19, 2018—a $22.49 or a 12.16% 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 FedEx’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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