SAN DIEGO & CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of U.S. Xpress Enterprises, Inc. (NYSE: USX) filed a class action complaint on April 2, 2019, against the company for alleged violations of the Securities and Exchange Act of 1933 pursuant to the company's June 2018 initial public offering ("IPO"). U.S. Xpress operates as an asset-based truckload carrier that provides services primarily in the U.S.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/u-s-xpress-enterprises-inc-apr-19/
According to the complaint, U.S. Xpress held its IPO in June 2018, offering its stock at $16.00 per share and generating over $245 million in proceeds based on misleading offering documents. In particular, U.S. Xpress failed to disclose that a shortage of trucks and employees and unexpected costs were negatively impacting the company's financial outlook. On November 1, 2018, the company revealed higher wages and independent contractor costs, lower than expected recruitment levels, and a higher insurance expense. On this news, the price of U.S. Xpress's stock dropped almost 30%, to close at just $7.10 per share on November 2, 2018, more than half the price of its IPO just months earlier, and has yet to recover.
U.S. Xpress Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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