Pomerantz LLP is investigating claims on behalf of investors of XPO Logistics, Inc. ("XPO" or the "Company"). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether XPO and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On December 12, 2018, Spruce Point Management ("Spruce Point") published a report regarding XPO, entitled "Trucking Ridiculous; End of the Road". The Spruce Point report asserted that a "forensic investigation" into XPO had revealed "financial irregularities that conveniently cover [the Company's] growing financial strain and inability to complete additional acquisitions despite repeated promises." Spruce Point reported 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 Spruce Point 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." Following publication of the Spruce Point report, XPO's stock price fell sharply during intraday trading on December 13, 2018.