Pomerantz LLP

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FedEx Corporation

We are investigating FedEx Corporation (FDX) (“FedEx” or the “Company”) for potential violations of the federal securities laws.

On June 27, 2017, the operations of FedEx’s TNT Express unit (“TNT”) were crippled by a cyberattack known as NotPetya, which involved the spread of a malware virus throughout TNT’s systems (the “Cyberattack”). On June 19, 2018, FedEx provided a disappointing capital expenditure outlook for its FedEx Express segment, the reporting segment that includes TNT’s results, and reported higher-than-expected TNT integration expenses. On this news, FedEx’s stock price fell $6.96 per share, or 2.7%, to close at $251.43 per share on June 20, 2018. Despite these issues, FedEx assured investors that the Company was “on track” to meet the TNT Income Improvement Target, and that TNT’s year-over-year growth had resumed. On September 17, 2018, FedEx reported lower-than-expected earnings for its first quarter ended August 30, 2018. The Company partially attributed these results to higher-than-expected TNT integration costs. On this news, FedEx stock’s stock price fell $14.15 per share, or 5.5%, to close at $241.58 per share on September 18, 2018. FedEx, however, continued to assure investors that the Company was on track for to meet its TNT Income Improvement Target, and touted that the Company’s “strong international volume growth reflect[ed] [FedEx’s] recovery from the TNT cyberattack.” On December 7, 2018, FedEx announced that David L. Cunningham would retire as FedEx Express’ President and CEO on December 31, 2018. Analysts immediately suggested that Cunningham’s “retirement”was a result of performance issues within the Company’s FedEx Express segment. On this news, FedEx stock’s stock price fell $13.67 per share, or 6.4%, to close at $201.39 per share on December 7, 2018. Finally, on December 18, 2018, FedEx reported a large profit miss for its fiscal quarter ended November 30, 2018. FedEx attributed the disappointing results to lower package volumes in Europe and a negative shift in TNT’s product mix to lower margin freight business following the Cyberattack—which had occurred well-over a year ago. The Company also lowered its fiscal 2019 earnings guidance and announced that the TNT Income Improvement Target would no longer be achievable by fiscal year 2020. On this news, FedEx’s stock price fell $22.50 per share, or 12.2%, to close at $162.51 per share on December 19, 2018.