LOS ANGELES, Aug. 19, 2019 (GLOBE NEWSWIRE) -- Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming August 26, 2019 deadline to file a lead plaintiff motion in the class action filed on behalf of FedEx Corporation (“FedEx” or the “Company”) (NYSE: FDX) investors who purchased securities between September 19, 2017 and December 18, 2018, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, at 310-201-9150, Toll-Free at 888-773-9224, or by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com.
In July 2016, the Company acquired TNT Express N.V., a logistics company, for $4.8 billion. On March 31, 2017, the Company announced that by fiscal 2020, the TNT integration would result in a $1.2 billion to $1.5 billion operating income improvement above its fiscal 2017 level (the “TNT Income Improvement Target”).
On December 18, 2018, the Company disclosed an earnings miss for second quarter 2018 due to negative shift in TNT’s product mix to lower margin freight business after a cyberattack on TNT’s operations in June 2017. The Company also lowered its fiscal 2019 guidance and stated that it could no longer achieve the TNT Income Improvement Target by fiscal 2020.
On this news, the Company’s shares fell $22.50 per share, or more than 12%, to close at $162.51 per share on December 19, 2018, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (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 the TNT Income Improvement Target; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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If you purchased or otherwise acquired FedEx securities during the Class Period you may move the Court no later than August 26, 2019 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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Contacts
Glancy Prongay & Murray LLP, Los Angeles
Lesley Portnoy, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com