A U.S. Xpress Enterprises shareholder is suing the carrier and asking a federal court to stop a merger vote with Knight-Swift Transportation Holdings until more financial information is released.
Stephen Bushansky filed the lawsuit last week against the company and U.S. Xpress leaders, alleging that stockholders will be voting with financial information that “omits or misrepresents material information” of the management’s financial projections, underlying data of financial valuations analyses, and background info.
U.S. Xpress shareholders are slated to vote on the approximately $808 million deal on June 29. But the suit, filed in the U.S. District Court for the Southern District of New York, seeks a trial.
The suit contains further allegations, saying a May 24 proxy statement about the deal is “false and misleading.” The securities document recommended that shareholders vote in favor of the proposed transaction.
“USX insiders are the primary beneficiaries of the Proposed Transaction, not the Company’s public stockholders,” the lawsuit also alleged.
Bushansky is known for his lawsuits against companies. Federal court records note 170 lawsuits with the name as a plaintiff.
The case isn’t the first time the Tennessee-based carrier has faced a lawsuit over information it’s filed with the Securities and Exchange Commission.
A class action suit from 2019 regarding an initial public offering alleged misrepresentations regarding securities law compliance and reached a $13 million settlement this year. The company denied any allegations of fault, negligence, liability, wrongdoing or damages.
