A Boston-based law firm is suing FedEx on behalf of some of its shareholders.
Investors who bought 500 shares of FedEx or greater between September 19, 2017 and December 18, 2018 are qualified to join the suit.
The suit accuses FedEx of misleading its investors by playing down the impact of a 2017 cyberattack and the cost of integrating TNT Express, a Dutch delivery service FedEx acquired in 2016.
“FedEx intends to vigorously defend itself against these allegations and will respond accordingly,” a statement from FedEx reads.
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FedEx has had a challenging year — from several, sudden C-suite departures to a probe and potential blacklisting from the Chinese government that sank its stock to a three-year low.
But the one that’s been vexing investors the most may be the 2016 acquisition of Dutch package company TNT Express. The $4.4 billion purchase has been hamstringed by the NotPetya cyberattack that cost the company some $400 million and a softening market in Europe.
And the costs of integrating the company into FedEx are about double what the company had initially estimated. Bloomberg opinion writer Brooke Sutherland summarized the acquisition as
Source:: Businessinsider – Technology