NEW YORK, Oct. 11, 2024 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of Georgia on behalf of all persons or entities who purchased the securities of United Parcel Service, Inc. (“UPS” or the “Company”) (NYSE: UPS) between January 30, 2024 and July 22, 2024, both dates inclusive (the “Class Period”).
The Complaint alleges that Defendants provided investors with material information concerning UPS’ expected revenue and adjusted operating margin for the fiscal year 2024. The Complaint further alleges that 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.
According to the Complaint, Defendants throughout the Class Period made 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. According to the Complaint such statements, absent these material facts, caused Plaintiff and other shareholders to purchase UPS’ securities at artificially inflated prices.
The Complaint further alleges that 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 Complaint alleges that 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.”
The Complaint also alleges investors and analysts reacted immediately to UPS’ revelation. The Complaint alleges that the price of UPS’ common stock declined dramatically, from a closing market price of $145.18 per share on July 22, 2024, to fall 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.
Investors who purchased or otherwise acquired shares of UPS should contact the Firm prior to the December 9, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
