NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C. is investigating potential claims on behalf of Swift Transportation Company (NYSE:SWFT) investors concerning whether the company’s board of directors violated its fiduciary duties.
On January 28, 2016, The Wall Street Journal reported that Swift’s CEO, Jerry Moyes, has pledged more than $600 million of his Swift stock, a quarter of the company’s outstanding shares, as security for loans. This arrangement exceeds the limits on margin-loan collateral set by Swift’s board. However, the board has granted Moyes multiple extensions to meet the limits.
After spending $100 million on share repurchases in November 2015 and January 2016, Moyes announced on January 26, 2016 that he would seek to have Swift spend an additional $200 million on share buybacks. The buybacks would retire roughly 9% of Swift’s stock and ease the pressure on Moyes’s margin loans. While beneficial to Moyes, this is harmful to the company.
If you purchased Swift securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact J. Brandon Walker, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information, please go to www.bespc.com.
