SAN DIEGO, Dec. 03, 2024 (GLOBE NEWSWIRE) -- Johnson Fistel, LLP announces its investigation of whether certain directors and officers of United Parcel Service, Inc. (NYSE: UPS) breached their fiduciary duties to UPS and its shareholders.
What can I do? If you are a current UPS shareholder, you may have legal claims that may be brought on behalf of the company, against the company’s directors and officers. If you wish to discuss this notice or your legal rights, please contact lead analyst Jim Baker (jimb@johnsonfistel.com) at 619-814-4471. If emailing, please include a phone number.
If you have continuously owned UPS shares, you can click or copy and paste the link below in a browser to join: https://www.cognitoforms.com/JohnsonFistel/UnitedParcelServiceInc
What is this about? The United Parcel Service will pay up to a $45 million penalty for improperly valuing a business unit, the U.S. Securities and Exchange Commission (SEC) said on November 22, 2024.
The SEC stated that UPS misrepresented its earnings by not adhering to generally accepted accounting principles in the valuation of its freight unit. According to the SEC order, in 2019, UPS estimated that its freight division would sell for no more than approximately $650 million. UPS's internal analysis suggested that nearly $500 million of goodwill associated with the unit was impaired.
However, instead of using its own analysis, UPS relied on an external consultant's valuation of the freight division. The SEC noted that UPS did not provide the consultant with the necessary information for a fair valuation. The consultant, using assumptions approved by UPS, estimated the freight unit's value at about $2 billion—three times UPS's own estimate.
Based on the consultant's estimate, UPS did not record a goodwill impairment in 2019. The SEC indicated that if UPS had properly valued the division, its earnings and other reported items would have been significantly lower.
Johnson Fistel LLP’s investigation seeks to determine whether UPS senior officers or members of its board of directors harmed the company by breaching their fiduciary duties or otherwise violating securities laws in connection with the foregoing alleged conduct.
About Johnson Fistel, LLP: Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, Georgia, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes. Services may be performed by attorneys in any of our offices.
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Past results do not guarantee future outcomes.
Services may be performed by attorneys in any of our offices.
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Contact:
Johnson Fistel, LLP
501 W. Broadway, Suite 800, San Diego, CA 92101
James Baker, Investor Relations or Frank J. Johnson, Esq., (619) 814-4471
jimb@johnsonfistel.com or fjohnson@johnsonfistel.com
