NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential misconduct at Swift Transportation Co. (“Swift” or the “Company”) (SWFT).
The investigation focuses on whether the Company’s Board of Directors and its officers committed mismanagement and breached their fiduciary duties. On January 28, 2016, The Wall Street Journal published an article stating that Jerry Moyes, CEO of Swift, has pledged more than $600 million of his holdings in Swift, which is a quarter of the company’s outstanding shares, as security for loans or loan-like contracts. Moyes’s commitment to use his shares as margin-loan collateral exceeded the limits set by Swift’s board and Swift’s directors have repeatedly granted Moyes time extensions to meet those limits.
After spending $100 million on share repurchases in November 2015 and January 2016, Moyes announced on January 26 that he wanted Swift to spend another $200 million buying back more shares. This buyback would retire roughly 9% of Swift's stock, support its price and ease the pressure on Moyes’s margin loans. According to Swift officials quoted in the Wall Street Journal article, “the buyback plan is unrelated to Mr. Moye’s stock pledges.”
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If you currently own SWFT stock and would like to discuss your legal rights, please visit www.faruqilaw.com/SWFT. You can also contact us by calling Stuart Guber toll free at (215) 277-5770 or by sending an e-mail to sguber@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Swift’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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