[BreachExchange] Lawsuit claims FedEx misled investors after cyber attack

[Destry Winant]

https://www.wmcactionnews5.com/2019/07/11/lawsuit-claims-fedex-misled-investors-after-cyber-attack/

A lawsuit claims FedEx violated federal securities laws after a cyber attack.

The suit, which impacts people who purchases FedEx stock in a 15-month
period starting in September 2017, alleges that FedEx misguided
investors about how fast it would be able to cover costs from the
cyber attack that impacted one of its subsidiaries, TNT Express.

The lawsuit was filed by Pomerantz Law Firm out of New York. It claims
executives downplayed the impact of the cyber attack in June 2017 of
its largest acquisition ever, the $4.8 billion purchase of TNT Express
of the Netherlands.

The suit said the cyberattack caused large shipping customers to go
with competitors and led to losses by FedEx even though the suit says
FedEx assure investors that losses were minimal.

The suit also claims that the integration caused members of the class
action lawsuit to purchase FedEx stocks at artificially inflated
prices.

FedEx responded to word of the lawsuit with this statement:

“FedEx and certain of its current and former executives have been
named as defendants in two putative class action lawsuits purported to
be brought on behalf of persons or entities who acquired FedEx common
stock during the period from 19 September 2017 through 18 December
2018. The lawsuits allege violations of the U.S. securities laws in
connection with the Company’s public disclosures during that period.
FedEx intends to vigorously defend itself against these allegations
and will respond accordingly.”
FedEx spokesperson

The lawsuit is seeking compensatory damages in an amount to be
determined at trial.