NEW YORK, Dec. 13, 2018 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of XPO Logistics, Inc. ("XPO" or the "Company") (NYSE: XPO). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether XPO and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On December 12, 2018, Spruce Point Management ("Spruce Point") published a report regarding XPO, entitled "Trucking Ridiculous; End of the Road". The Spruce Point report asserted that a "forensic investigation" into XPO had revealed "financial irregularities that conveniently cover [the Company's] growing financial strain and inability to complete additional acquisitions despite repeated promises." Spruce Point reported that it had uncovered, among other issues, "concrete evidence to suggest dubious tax accounting, under-reporting of bad debts, phantom income through unaccountable M&A earn-out liabilities, and aggressive amortization assumptions: all designed to portray glowing 'Non-GAAP" results." The Spruce Point report further stated that "XPO insiders have aggressively reduced their ownership interest in the Company since coming public, and recently enacted a new compensation structure tied to 'Adjusted Cash Flow Per Share'–defined in such a non-standard way that it is practically meaningless." Following publication of the Spruce Point report, XPO's stock price fell sharply during intraday trading on December 13, 2018.
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
SOURCE Pomerantz LLP