A class action lawsuit was filed against TFI International Inc. (TFII) by Levi & Korsinsky on March 14, 2025. The plaintiffs (shareholders) alleged that they bought TFII stock at artificially inflated prices between April 26, 2024 and February 19, 2025 (Class Period) and are now seeking compensation for their financial losses. Investors who bought TFI International stock during that period can click here to learn about joining the lawsuit.
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TFI International is a Canadian logistics and transportation company, operating through three segments: Less-Than-Truckload (LTL), Truckload, and Logistics. In 2021, TFI acquired UPS Freight, the LTL and dedicated truckload divisions of United Parcel Service (UPS). Following the acquisition, UPS Freight was rebranded as TForce Freight and integrated into the company’s LTL segment.
The company’s tall claims about revenue and profitability of its TForce Freight business are at the heart of the current complaint.
TFI International’s Misleading Claims
According to the lawsuit, TFI and two of its senior officers (Individual Defendants) repeatedly made false and misleading public statements throughout the Class Period. Particularly, they are accused of omitting truthful information about the loss of small and medium business customers, and resulting declines in TForce Freight revenue, from SEC filings and related material.
For instance, during the Class Period, the company reported marginal year-over-year growth in both total revenue and revenue before fuel surcharge items for three different quarterly reports in Fiscal 2024. TFI attributed this growth to “contributions from acquisitions partially offset by a reduction of volumes due to a continued weaker transportation environment and to a reduction in fuel surcharge revenue.”
However, subsequent events (discussed below) revealed that TFI misled investors about the gradual loss of its small and medium business customers.
Plaintiffs’ Arguments
The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about the business practices and prospects during the Class Period. Importantly, the defendants are accused of misleading investors about the growth trajectory of the company’s TForce business.
The information became clear after the market closed on February 19, 2025, when TFI reported weaker-than-expected results for its fourth quarter and full year Fiscal 2024 period. During the conference call held on the same day, the CEO acknowledged that the company was consistently losing small and medium-sized customers, which had the best margins. This trend accelerated in Q4, significantly impacting TFI’s most profitable business. Following the news, TFII stock plunged 20.5% on February 20.
To conclude, the defendants allegedly misled investors regarding challenges in TFI International’s largest business segment, TForce Freight, which ultimately impacted the company’s overall financial performance. Owing to these issues, TFII stock has lost 32.8% year-to-date, causing massive damage to shareholder returns.
