Robbins LLP is Investigating Allegations that United Parcel Service, Inc. (UPS) Misled Investors Regarding its Business Prospects

Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities who purchased or otherwise acquired United Parcel Service, Inc. (NYSE: UPS) securities between January 30, 2024 and July 22, 2024. UPS is a multinational parcel delivery and supply chain management solutions company operating in more than 200 countries and territories.

The Allegations

According to the complaint, during the class period, defendants created the false impression that they possessed reliable information pertaining to the Company’s projected revenue outlook and anticipated growth while also minimizing risk from seasonality and macroeconomic fluctuations. In truth, UPS’ optimistic reports of growth, plans to handle volume variability, upcoming profit growth, and consistent claims that the first quarter would present the worst margins of the fiscal year fell short of reality; the Company was not truly equipped to handle a volume surge without causing a corresponding significant decline in their operating margin.

Plaintiff alleges that 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.”  On this news, the price of UPS common stock fell from $145.18 per share on July 22, 2024, to close at $127.68 per share on July 23, 2024, a decline of $17.50 per share, or about 12.05% according to the complaint.

What Now: You may be eligible to participate in the class action against United Parcel Service, Inc. Shareholders who want to serve as lead plaintiff for the class must submit their application to the court by December 9, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.