USX Investors $13M Settlement

U.S. Xpress Enterprises (USX) agreed to settle $13 million with investors.

The complaint alleged that the Offering Documents failed to disclose several things, including that a shortage of trucks had a negative impact on U.S. Xpress's dedicated division; certain shipping patterns were performing differently than expected, which negatively affected utilization, driver retention and hiring, and U.S. Xpress's dedicated accounts (including one large account); as a result, U.S. Xpress's OTR division was providing continued support to the dedicated division; U.S. Xpress failed to stay informed regarding two large liability events, resulting in the understatement of the company's insurance claim expense; and the cost per mile for driver wages and independent contractors was exceeding the company's internal expectations. This information was revealed in a law firm press release.