A securities class action has been filed in the USDC — N.D.GA. against United Parcel Service, Inc. (UPS) (“UPS” or the “Company”), on behalf of all those that purchased or otherwise acquired UPS common stock between January 30, 2024 and July 22, 2024, both dates inclusive (the “Class Period”).
UPS is a multinational parcel delivery and supply chain management solutions company operating in more than 200 countries and territories. UPS provides same day and overnight air delivery, definite-date ground delivery, and SurePost, which provides non-urgent deliveries with the final leg provided by the U.S. Postal Service.
The complaint alleges defendants provided investors with material information concerning UPS’ expected revenue and adjusted operating margin for the fiscal year 2024. 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. Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially 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. Such statements absent these material facts caused shareholders to purchase UPS’ securities at artificially inflated prices. 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 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.” Investors and analysts reacted immediately to UPS’ revelation.
The price of the Company’s common stock declined dramatically. From a closing market price of $145.18 per share on July 22, 2024, UPS’ stock price fell 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.
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