SAN DIEGO, CA / ACCESSWIRE / January 22, 2019 / The Shareholders Foundation, Inc. announces that a lawsuit was
filed for certain investors in shares of XPO Logistics, Inc. (NYSE: XPO) over alleged securities laws violations by XPO Logistics,
Inc.
Investors, who purchased shares of XPO Logistics, Inc. (NYSE: XPO), have certain options and should contact the Shareholders
Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff claims that between February 26, 2014, and December 12, 2018 the defendants made false and/or misleading
statements and/or failed to disclose that XPO Logistics' highly touted aggressive M&A strategy had yielded only minimal returns
to the Company, that XPO Logistics, Inc. was utilizing improper accounting practices to mask its true financial condition,
including, inter alia, under-reporting of bad debts and aggressive amortization assumptions, and that XPO Logistics, Inc. as a
result, the Company's public statements were materially false and misleading at all relevant times.
On September 2, 2011, Bradley S. Jacobs, through an equity investment led by Jacobs Private Equity, LLC, acquired a 71%
ownership interest in Express-1. Jacobs assumed the roles of Chairman of the Board of Directors and Chief Executive Officer
(''CEO'') and renamed the Company ''XPO Logistics, Inc.'' XPO Logistics, Inc has completed seventeen acquisitions since Jacobs took
control of the Company, deploying $6.1 billion of capital. Jacobs's tenure at XPO has been characterized by aggressive mergers and
acquisitions (''M&A'') strategy. After Jacobs took control of the Company, Fortune Magazine noted that XPO ''has grown from
$177 million in sales in 2011 to $17 billion today, thanks largely to an incredible run of acquisitions.'' On August 2, 2017,
Jacobs announced plans to earmark up to $8 billion for additional acquisitions.
The plaintiff says that prior to acquiring XPO Logistics, Inc., Jacobs had leadership roles in several other companies, having,
inter alia, founded United Waste Systems, Inc. (''UWS'') in 1989 and co-founded United Rentals, Inc. (''URI'') in 1997, which
eventually collapsed after an accounting scandal under Jacobs' leadership.
On December 12, 2018, a report was published regarding XPO Logistics, Inc., entitled ''Trucking Ridiculous; End of the Road''.
The report asserted that a ''forensic investigation'' into XPO Logistics, Inc. had revealed, ''financial irregularities that
conveniently cover [the Company's] growing financial strain and inability to complete additional acquisitions despite repeated
promises.'' The report alleged that it had uncovered, among other issues, ''concrete evidence to suggest dubious tax accounting,
under-reporting of bad debts, phantom income through unaccountable M&A earn-out liabilities, and aggressive amortization
assumptions: all designed to portray glowing 'Non-GAAP'' results.'' The report further stated that ''XPO insiders have aggressively
reduced their ownership interest in the Company since coming public, and recently enacted a new compensation structure tied to
‘Adjusted Cash Flow Per Share' - defined in such a non-standard way that it is practically meaningless.'' The report also stated
that ''[i]n our opinion, XPO has used a nearly identical playbook from [URI] leading up to its SEC investigation, executive felony
convictions, and share price collapse.''
Those who purchased Mar XPO Logistics, Inc. (NYSE: XPO) shares should contact the Shareholders Foundation, Inc.
CONTACT:
Shareholders Foundation, Inc.
Michael Daniels
+1 (858) 779-1554
mail@shareholdersfoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring and a settlement claim filing service, which does
research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal
related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. Any referenced cases,
investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The
information is only provided as a public service. It is not intended as legal advice and should not be relied upon.
SOURCE: Shareholders Foundation, Inc.
