The Gross Law Firm notifies investors that a class action has commenced in the United States District Court for the Northern District of Georgia on behalf of shareholders of United Parcel Service, Inc. who purchased securities between January 30, 2024 and July 22, 2024.
According to the complaint, defendants provided investors with material information concerning UPS’ expected revenue and adjusted operating margin for the fiscal year 2024. Defendants’ statements included, among other things, confidence in the Company’s volume growth, price discipline, cost execution, and its overall ability to handle volume variabilities. Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of UPS’ growth; notably, that it was not truly equipped to handle a surge in volume in lower-profit services without seeing a significant decline in their operating margins. Such statements absent these material facts caused shareholders to purchase UPS’ securities at artificially inflated prices. The truth emerged on July 23, 2024 when UPS announced its financial results for the second quarter of fiscal 2024, provided lower-than-expected guidance for the third quarter, and reduced its margin guidance for the full fiscal year 2024. The Company attributed its results and lowered guidance on the shift in “U.S. volume mix both in terms of product and customer segmentation . . . toward value products.” Investors and analysts reacted immediately to UPS’ revelation. The price of UPS’ common stock declined dramatically. From a closing market price of $145.18 per share on July 22, 2024, UPS’ stock price fell to $127.68 per share on July 23, 2024, a decline of $17.50 per share, or about 12.05% in the span of just a single day.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until December 9, 2024 to request that the court appoint them lead plaintiff.
To receive more information, please fill out the form.
