U.S. Xpress Enterprises, Inc. (USX) Misled Shareholders According to a Recently Filed Class Action

According to the complaint against the company for alleged violations of the Securities and Exchange Act of 1933 pursuant to the company's June 2018 initial public offering ("IPO"), U.S. Xpress Enterprises, Inc. (USX) held its IPO, offering its stock at $16.00 per share and generating over $245 million in proceeds based on misleading offering documents. In particular, U.S. Xpress failed to disclose that a shortage of trucks and employees and unexpected costs were negatively impacting the company's financial outlook.  On November 1, 2018, the company revealed higher wages and independent contractor costs, lower than expected recruitment levels, and a higher insurance expense.  On this news, the price of U.S. Xpress's stock dropped almost 30%, to close at just $7.10 per share on November 2, 2018, more than half the price of its IPO just months earlier, and has yet to recover.