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FDX.US
id: 299
On September 15, 2022, FedEx (FDX) withdrew the financial forecast it issued just 3 months ago, saying a global demand slowdown accelerated, that shocked investors. FedEx said it was cutting costs, shutting some office locations, reducing labor hours, and consolidating some sorting facilities.

Later, CEO Raj Subramaniam said in a statement that FedEx (FDX) was caught off guard by how quickly the world economy had worsened just before the end of its fiscal first quarter on Aug. 31. "Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.," Subramaniam said. "We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first quarter results are below our expectations."

On this news, the price of FedEx (FDX) stock plunged 21% and the Company lost over $11 billion of its capitalization, seriously damaging investors on the 16th of Sept. 2022.

FedEx is under new management now, as Subramaniam only took over as CEO in June following the retirement of company founder Fred Smith and the company is in the early stages of a comprehensive reorganization and cost-cutting plan.

At first glance, it can be said that the new CEO Subramaniam duly fulfilled his obligations to disclose full information to shareholders of FedEx. However, his warnings, forecasts, and comments were more likely not of an objective nature, but "panic" with an excessively negative color, which led to the same "panic" reaction of the price of the Company's shares and the entire whole market. The capitalization of FedEx and the Stock Market have suffered unnecessary damage.
Case Status
Attorney Investigation
Alleged Offence
Mismanagement
Misleading Statements
Failure to Disclose
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
15 September 2022
Collecting participants…

FedEx Corporation

FedEx Corporation, together with its subsidiaries, provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Grou...

    Ticker
    FDX.US
    ISIN
    US31428X1063
    CIK
    1048911
    Sector
    Industrials
    Industry
    Integrated Freight & Logistics
    Country
    USA
    Address
    942 South Shady Grove Road, Memphis, TN, United States, 38120