UPS Faces Investor Lawsuit Over Alleged Misleading Statements
New York City, Friday, 15 November 2024.
Faruqi & Faruqi, LLP is investigating claims against United Parcel Service for potential securities law violations. Investors who lost over $100,000 between January and July 2024 are urged to contact the firm before the December 9 deadline. The lawsuit alleges UPS misled investors about its 2024 financial outlook.
Allegations Against UPS
The allegations against United Parcel Service, Inc. (NYSE: UPS) are serious, with Faruqi & Faruqi, LLP leading the charge on behalf of investors. The firm claims that UPS executives misled shareholders by providing overly optimistic statements regarding revenue and operating margins for the fiscal year 2024. These false assurances reportedly masked challenges in managing increased volume in lower-profit services, which only came to light with the company’s disappointing second-quarter results announced on July 23, 2024[1][2].
Impact on Stock Prices
The revelation of UPS’s true financial standing had immediate repercussions. On July 23, 2024, following the announcement of lower-than-expected guidance for the third quarter and a downward revision of margin expectations for the full fiscal year, UPS’s stock price plummeted. It fell from $145.18 per share on July 22, 2024, to $127.68 per share the following day, marking a drastic decline of $17.50 per share, or approximately 12.05%[3][4]. This significant drop underscored the market’s reaction to the unexpected financial disclosures.
Legal Proceedings and Deadlines
Investors affected by these developments have until December 9, 2024, to seek the role of lead plaintiff in the ensuing federal securities class action. This position is typically held by the investor with the largest financial interest in the litigation, who will oversee the proceedings on behalf of the class. Faruqi & Faruqi, LLP is also encouraging whistleblowers and former employees with relevant information to come forward, potentially strengthening the case against UPS[1][5].
Future Implications for UPS
As UPS navigates this legal challenge, the company is simultaneously gearing up for the holiday shipping season, a critical period for logistics companies. Despite the current turmoil, UPS reported a 5.6% increase in revenue for the third quarter of 2024 compared to the previous year, indicating some resilience in its operations[6]. However, the long-term impact of these legal proceedings and the potential financial liabilities they entail remain uncertain, casting a shadow over its future performance in the stock market.