NEW YORK–(BUSINESS WIRE)–Faruqi & Faruqi, LLP, a leading national securities law firm, reminds
investors in U.S. Xpress Enterprises, Inc. (“U.S. Xpress” or the
“Company”) (NYSE: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
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 protected].
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
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
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.
Attorney Advertising. The law firm responsible for this advertisement is
Faruqi & Faruqi, LLP (www.faruqilaw.com).
Prior results do not guarantee or predict a similar outcome with respect
to any future matter. We welcome the opportunity to discuss your
particular case. All communications will be treated in a confidential
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
York, NY 10017
Attn: Richard Gonnello, Esq.
(877) 247-4292 or (212) 983-9330