NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is notifying investors that a federal class action lawsuit has been filed against U.S. Xpress Enterprises, Inc. (“USX” or the “Company”) (NYSE: USX) and certain of its officers and directors (collectively, “Defendants”) in the U.S. District Court for the Eastern District of Tennessee. If you purchased USX securities pursuant and/or traceable to the Company’s initial public offering (“IPO”), which occurred in June 2018, you are encouraged to contact a Scott+Scott attorney at (212) 419-3171 for more information.
USX describes itself as the fifth largest asset-based truckload carrier in the U.S. by revenue, providing services using both its own truckload fleet and third-party carriers.
The complaint alleges that Defendants made materially false and misleading statements regarding the Company’s business prospects and financial health. Specifically, Defendants failed to disclose that: (i) a shortage of trucks was negatively impacting USX’s dedicated division; (ii) certain account shipping patterns had been performing differently than expected, and that, as a result, utilization and driver retention and hiring was being negatively affected causing USX’s OTR division to provide continued support to the dedicated division; (iii) USX failed to stay informed regarding two large liability events and that, as a result, USX’s insurance claims expense was understated; and (iv) USX’s cost per mile for drive wages and independent contractors was exceeding the Company’s internal expectations.
On November 1, 2018, USX issued a press release, and participated in an earnings conference call, that disclosed how unusual shipping patterns were impacting its segments and how market challenges for drivers resulted in a year-to-year tractor count decrease. Further, that USX was seeing higher driver wages and independent contractor costs, lower than expected recruitment levels, and a higher insurance expense.
Following this news, USX’s stock price fell $3.04 per share, or nearly 30%, to close at $7.10 on November 2, 2018. At the time the Complaint was filed, USX’s stock price traded around $7.87 per share, representing a decline of approximately 51% from USX’s IPO price of $16.
What You Can Do
If you purchased USX securities in or traceable to the Company’s IPO, or if you have questions about this notice or your legal rights, please contact attorney Jonathan Zimmerman at (212) 419-3171, or at firstname.lastname@example.org. The lead plaintiff deadline is May 10, 2019.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.