THE LAWSUIT: A class action securities lawsuit was filed against United Parcel Service, Inc. (UPS) that seeks to recover losses of UPS shareholders who were adversely affected by alleged securities fraud between January 30, 2024 and July 22, 2024
CASE DETAILS: 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.
WHAT’S NEXT? If you suffered a loss in UPS stock during the relevant time frame – even if you still hold your shares – go to https://zlk.com/pslra-1/united-parcel-service-inc-lawsuit-submission-form?wire=18 to learn about your rights to seek a recovery. There is no cost or obligation to participate.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
https://zlk.com/
