According to the Complaint, XPO Logistics, Inc. ("XPO") provides transportation and logistics services in the United States and internationally, through its Transportation and Logistics segments. The company offers its services to customers in various industries, such as retail, e-commerce, food and beverage, manufacturing, technology and telecommunications, aerospace and defense, life sciences, healthcare, medical equipment, and agriculture. The Company was formerly known as Express-1 Expedited Solutions, Inc.
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, the Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) XPO’s highly touted aggressive M&A strategy had yielded only minimal returns to the Company; (ii) XPO was utilizing improper accounting practices to mask its true financial condition, including, inter alia, under-reporting of bad debts and aggressive amortization assumptions; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On April 2, 2019, the Court issued an Order appointing Lead Plaintiff and Lead Counsel. Lead Plaintiff filed a consolidated Complaint on June 3. Defendants filed a Motion to Dismiss the consolidated Complaint on August 2. On November 4, the Court issued a ruling in a Minute Entry granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint.
On January 3, 2020, Lead Plaintiff filed an amended consolidated Complaint. Defendants filed a Motion to Dismiss the amended consolidated Complaint on March 3. On March 19, 2021, the Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed with prejudice.
Lead Plaintiff filed a notice appealing the Court's Dismissal Order on April 19, 2021. On August 1, 2022, the Court of Appeals affirmed the District Court's Dismissal Order.
