FedEx, a renowned courier delivery service provider from America is reported to be facing a lawsuit in the New York Court for misleading its investors on the repercussions on a 2017 cyber attack.
The lawsuit filed by Pomerantz Law Firm in New York states that the logistics company violated the federal securities law by misguiding the investors on how fast it could recover its assets on a financial note from a cyber attack impact.
Reports are in that the Tennessee based firm has breached the trust of its investors by faking up costs cover to boost the sale of FedEx overinflated stocks in a 15-month period starting in Sept’17. Pomerantz lawsuit alleges that the shipping company misled its investing partners over a June’17s $4.8 Billion acquisition of Netherlands based TNT Express in this regards.
Pomerantz on behalf of its clients is demanding compensatory damage in an amount to be determined after hearing.
Note– Founded in the 1990s, Memphis based FedEx is into the business of Post Delivery, Express Mail, Freight Forwarding and 3rd party logistics. It has been a sponsor for sporting events like Motorsports, football, Basketball, and some other events. The company’s logo, vehicles, jersey’s and the name has been used and showcased in a number of films such as ‘Cast Away’. The company has also actively participated in the funding of US Politics by giving away $21 million since 1990; out of which 45% of it went to Democrats and 55% of Donation reached Republicans.