Questions? +1 (202) 335-3939 Login
Trusted News Since 1995
A service for technology industry professionals · Sunday, April 21, 2019 · 482,813,333 Articles · 3+ Million Readers

SHAREHOLDER ALERT - Bronstein, Gewirtz & Grossman, LLC Notifies Investors of Class Action Against U.S. Xpress Enterprises, Inc. (USX) and Lead Plaintiff Deadline: May 10, 2019

/EIN News/ -- NEW YORK, March 19, 2019 (GLOBE NEWSWIRE) -- Attorney Advertising-- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against purchasers U.S. Xpress Enterprises, Inc. (“U.S. Xpress” or the “Company”) (NYSE: USX) and its directors, on behalf of shareholders who purchased U.S. Xpress securities pursuant and/or traceable to the company’s initial public offering completed in June 2018 (the “IPO” or the “Offering”). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/usx.

This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1933.

The complaint alleges that defendants made false and misleading statements and 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, 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 suffered damages.

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, and in a conference call discussing 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 further disclosed higher driver wages and independent contractor costs, lower than expected recruitment levels, and a higher insurance expense.  On this news, U.S. Xpress’s stock price fell $3.04 per share, or nearly 30%, to close at $7.10 per share on November 2, 2018.

If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/usx or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in U.S. Xpress you have until May 10, 2019 to request that the Court appoint you as lead plaintiff.  Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique.  Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients.  In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration.   Attorney advertising. Prior results do not guarantee similar outcomes.

Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com

BGG Logo.jpg

Powered by EIN News
Distribution channels: Consumer Goods, Law


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.

Submit your press release