NEW YORK, March 18, 2019 — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of U.S. Xpress Enterprises, Inc. (“U.S. Xpress” or the “Company”) (NYSE: USX). An action has been filed on behalf of investors who purchased or otherwise acquired U.S. Xpress common stock pursuant and/or traceable to the Company’s June 2018 initial public offering (the “IPO”).
According to the complaint, U.S. Xpress purports to be the fifth largest asset-based truckload carrier in the U.S. by revenue. U.S. Xpress’ fleet consists of more than 6,800 tractors and approximately 16,000 trailers.
On or about June 13, 2018, U.S. Xpress completed its IPO by selling 16,668,000 shares of U.S. Xpress common stock at a price of $16 per share.
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. According to the complaint, in the press release and 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 higher insurance expense.
On this news, the price of U.S. Xpress’ common stock declined by $3.04 per share, nearly 30%, to close at $7.10 per share on November 2, 2018.
According to the action, the offering materials issued in connection with the IPO failed to disclose, among other things, that (1) a shortage of trucks was negatively impacting U.S. Xpress’ dedicated ision, (2) certain account shipping patterns had been performing differently than expected, negatively impacting utilization, driver retention and hiring, as well as U.S. Xpress’ dedicated accounts, and that consequently, U.S. Xpress’ dedicated accounts, including one large account were being negatively impacted, (3) U.S. Xpress failed to stay informed regarding two large liability events, resulting in an understatement of insurance claim expense, and (4) U.S. Xpress’ cost per mile for driver wages and independent contractors was exceeding the Company’s internal expectations.
If you are an investor in U.S. Xpress, you may move the court no later than May 10, 2019 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
SOURCE Kaplan Fox & Kilsheimer LLP