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TFII.US
id: 1526
TFI International ($TFII) Misleading Revenue and Customer Losses Case
S.D. New York
Court1:25-cv-02159
Case number04/26/2024
Class period Start02/19/2025
Class period End05/13/2025
Lead Plaintiff motion deadline- $TFII investors filed a lawsuit against TFI International for failing to disclose customer losses and rising operational costs, which impacted its largest business segment.
- After reporting a steep decline in net income and admitting to losing small and medium-sized customers on February 19, 2025, $TFII dropped 20.5%.
- $TFII investors can join this case to stay updated on potential recovery.
Case Details:
On February 19, 2025, after the market closed, TFI International ($TFII) announced disappointing Q4 and full-year 2024 financial results, revealing a sharp drop in net income and unexpected revenue challenges.
The company reported Q4 net income of $88.1 million, a 33% decline from the previous year, while full-year net income fell 16% to $422.5 million. Revenue in its Less-than-Truckload (LTL) segment, which accounts for 43% of total revenue, dropped 13% year-over-year, marking a significant downturn.
During the earnings call, CEO Alain Bédard admitted that TFI had been losing small and medium-sized business customers, particularly in its TForce Freight division. These customers typically generate higher profit margins, and their departure led to increased reliance on lower-margin corporate accounts. Bédard described the company’s cost-cutting efforts as "like a dog chasing its tail," admitting that volume declines continued to outpace cost reductions.
Before this disclosure, TFI had reassured investors that its LTL segment remained stable and positioned for growth. However, the company had not warned about customer losses or the rising difficulty of managing costs. When investors learned the truth, $TFII stock plummeted 20.5%.
Based on these events, $TFII investors filed a lawsuit against TFI International, claiming the company:
- It failed to disclose that it was losing small and medium-sized customers, leading to declining revenue.
- It misled investors by presenting its LTL business as stable while struggling with volume declines and cost overruns.
Investors believe TFI International concealed critical financial risks.
Case Status
Lead Plaintiff Appointment
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02/19/2025
Filing date
03/14/2025
Lead Plaintiff Deadline
05/13/2025