An investigation on behalf of investors of CSX Corporation (NASDAQ:CSX) shares over potential securities laws violations by CSX Corporation and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of CSX Corporation (NASDAQ:CSX) concerning whether a series of statements by CSX Corporation regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Jacksonville, FL based CSX Corporation is a transportation company. The Company provides rail-based freight transportation services, including traditional rail service and transport of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. CSX Corporation reported that its annual Total Revenue declined from over $11.81 billion in 2015 to over $11.06 billion in 2016 and that its Net Income decreased from over $1.96 billion in 2015 to over $1.71 billion in 2016.

On March 7, 2017, CSX Corporation announced the hiring of Chief Executive Officer, Hunter Harrison, a 73-year-old railroad executive, following a campaign by activist investor Mantle Ridge. Harrisons compensation for the four year contract included $84 million in reimbursement for pay and benefits forfeited from his prior position, payment of a tax indemnity potentially amounting to as much as $23 million, and tens of millions of dollars in salary and incentive compensation. Notably, Harrison was hired despite refusing the Companys request for an independent doctor to review his medical records. During 2017, widespread problems reportedly plagued the Company including service disruptions, decreases in operational performance and the exit of several executives.

On December 15, 2017, CSX Corporation announced that Harrison had died due to severe complications from a recent illness.

According to the investigation the circumstances have raised questions in the finance sector regarding whether certain Companys executives had prior undisclosed knowledge of Harrisons health condition or failed to exercise due diligence in the hiring process.