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By Alex Lennane
A shareholder lawsuit has been launched against FedEx, claiming “tens of millions of dollars in damages”.
The claim highlights the accuracy of corporate earnings calls and the responsibility of executives to ensure transparency.
Filed last month, it alleges that FedEx’s management team knew that its takeover of TNT, which was swiftly followed by the NotPetya cyber attack, was not going to reach the targets outlined to investors.
During the period that the claimant alleges FedEx knew, but did not disclose problems at TNT, executives sold some ...
Comment on this article
Lori L
October 01, 2019 at 2:22 pmWhy are you all running an article that was first published in January of 2019? Making it seem that a law suit was recently filed?
Alex Lennane
October 01, 2019 at 3:12 pmThe lawsuit was filed on September 17, 2019, which was pretty recent!
Gavin van Marle
October 01, 2019 at 6:52 pmHi Lori,
It may be that you read the dates the wrong way round?
Eric Mooney
October 01, 2019 at 8:30 pmYep… pretty sure that’s it.
A FDX little guy
October 03, 2019 at 4:15 amThat’s nice that these millionaire investors are mad that they aren’t getting the lucrative return on their money that they thought but what is suing a company for millions going to do except hurt employees like myself? Last time I checked investing money in anything was a “risk”. I didn’t realize you were promised a positive return?
FedEx employees have already given up bonuses this year while executive have skated away with gazzillons and now the millionaire investors have the means to sue to recoup their losses…..
What about the little guy?
Here’s what happens to the little guy in this picture. The little guy that has four kids and both myself and my wife work for this company. Families like mine that have invested 100% of our families livelihoods into a company. We get left holding the bag. We get our raises, bonuses and base pay reduced or eliminated to recoup the millions lost from bad executives decisions and millions lost to lawsuits so the other millionaires can get their money back.
Ultimately….the little guy loses!
Another little guy
October 03, 2019 at 7:30 pmGreed ….. no more PSP philosophy of days past! Frontline employees made this company what it is today. We were proud to work for Federal Expess and we were rewarded for our professionalism and efficiency. Customers recognized Our superiority in the industry, most importantly. However, things changed! Our honest efforts were not enough anymore! Productivity expectations became unachievable and morale plummeted. New employees are not sticking around as they once did in the early days. The company cannot keep employees like they once did. Once we were able to earn a livable wage. Medical insurance available to employees is almost unaffordable. I am glad to have been a part of the company back in the 80’s. I have a pension and 401k and very much enjoyed the journey. However, something is just not the same anymore. Maybe micromanaging is not the best work environment. Just saying!
Anxious
October 04, 2019 at 12:53 pmI agree with all that you have stated. The micromanaging is an issue but this is where we are with all corporations in the time we live. The data driven decisions require everything to be known or at least available. Feeling like you are being micromanaged is a result of consistent poor performance. If an employee performs at expectations they will feel less micromanaged.
But yes, FedEx has changed significantly and greed at the top is no different than (pick any fortune 500 company).
Amy
October 04, 2019 at 1:31 amYour statement is very true as I am wondering if I need to start looking for another job! I just recently came upon this conclusion myself without knowing anything about the lawsuit because it seemed like they were trying to make the shareholders happy the last several years while not purchasing and upgrading equipment. It is most definitely us little guys that are going to be hurt.