February 4, 2021 - The court granted the defendants' motion to dismiss.

March 13, 2020 - A motion to dismiss the amended consolidated complaint was filed.

January 13, 2020 - An amended consolidated complaint was filed.

June 26, 2019 - An investor in shares of FedEx Corporation (NYSE: FDX) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by FedEx Corporation in connection with certain allegedly false and misleading statements made between September 19, 2017 and December 18, 2018.

Memphis, TN based FedEx Corporation reported that its Total Revenue rose from over $50.36 billion for the 12 months period that ended on May 31, 2016 to over $60.31 billion for the 12 months period that ended on May 31, 2017 and that its Net Income for those respective time periods increased from $1.82 billion to over $2.99 billion. In July 2016, FedEx significantly expanded its international operations through its $4.8 billion acquisition of TNT Express N.V. (“TNT”), a Netherlands-based logistics company with operations concentrated in Europe.

On June 28, 2017, FedEx Corporation announced that the worldwide operations of the Company’s TNT Express unit were significantly affected by a cyberattack known as Petya. The timing of the attack was particularly problematic for FedEx, as TNT’s systems were paralyzed during the critical period involving the integration of TNT with the Company’s legacy European operations.

On July 17, 2017, FedEx Corporation filed its 10-K with the U.S. Securities and Exchange Commission. In a press release coinciding with the filing, FedEx Corporation stated that, due to Petya, “customers are still experiencing widespread service and invoicing delays, and manual processes are being used to facilitate… We cannot estimate when TNT services will be fully restored.” In addition, FedEx Corporation noted that the “financial impact” of the attack will likely be material, as the Company does not have cyber or other insurance to cover situations of this nature. The truth about TNT’s deteriorating business was revealed through a series of disclosures culminating on December 18, 2018. On that date, FedEx Corporation reported a large profit miss for its second fiscal quarter ended November 30, 2018. FedEx Corporation attributed the disappointing results to lower package volumes in Europe and a negative shift in TNT’s product mix to lower margin freight business following the Cyberattack—which had occurred well over a year ago. FedEx Corporation also lowered its fiscal 2019 earnings guidance and announced its main TNT synergy target would no longer be achievable by fiscal year 2020.

According to the complaint the plaintiff alleges on behalf of purchasers of FedEx Corporation (NYSE: FDX) common shares between September 19, 2017 and December 18, 2018, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between September 19, 2017 and December 18, 2018, the defendants made false and misleading statements and/or failed to disclose that TNT’s overall package volume growth was slowing as TNT’s large customers permanently took their business to competitors after the Cyberattack, that as a result of the customer attrition, TNT was experiencing an increased shift in product mix from higher-margin parcel services to lower-margin freight services, that the anticipated costs and timeframe to integrate and restore the TNT network were significantly larger and longer than disclosed, that FedEx was not on track to achieve TNT synergy targets, and that as a result of these undisclosed negative trends and cost issues, FedEx’s positive statements about TNT’s recovery from the Cyberattack, integration into FedEx’s legacy operations, customer mix, customer service levels, profitability, and prospects lacked a reasonable basis. Shares of FedEx Corporation (NYSE: FDX) declined from $274.66 per share in early 2018 to as low as $150.94 per share on December 26, 2018.