Award Winning Firm Labaton Sucharow Investigating FedEx Corp (NYSE: FDX)

Rhea-AI Summary

Labaton Sucharow is investigating FedEx (NYSE: FDX) for potential federal securities law violations. Following a disappointing preliminary financial report on September 15, 2022, FedEx announced the closure of storefronts and corporate offices, and a hiring freeze due to a significant decline in global package delivery volumes. The company anticipates missing Wall Street's profit expectations for Q1 and expects worsening business conditions, leading to a 20% stock drop in after-hours trading.

Positive

• None.

Negative

• FedEx expects to miss Wall Street's profit targets for Q1.
• Company is closing storefronts and corporate offices.
• Hiring freeze implemented due to declining business.
• Stock fell over 20% in after-hours trading following the announcement.

NEW YORK--(BUSINESS WIRE)-- Labaton Sucharow, a nationally ranked and award-winning shareholder rights firm, announces that it is investigating FedEx (NYSE: FDX) for potential violations of the federal securities laws.

On Thursday, September 15, 2022, FedEx released preliminary first quarter financial results and said they are shuttering storefronts and corporate offices while putting off new hires brought on by drop-off in its global package delivery business.

The company warned it will likely miss Wall Street's profit target for its fiscal first quarter that ended Aug. 31 and said it expects business conditions to further weaken in the current quarter amid weaker global volume. Its stock fell more than 20% in after-hours trading following the announcement.

If you currently own stock or options in FedEx Corp. and suffered a loss, click here to participate.

If you want to receive additional information and protect your investments free of charge, please contact David J. Schwartz using the toll-free number (800) 321-0476 or via email at david@labaton.com.

About the Firm

Labaton Sucharow LLP is one of the world's leading complex litigation firms representing clients in securities, corporate governance and shareholder rights, consumer, and cybersecurity and data privacy litigation, as well as whistleblower representation. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at labaton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220916005338/en/

David J. Schwartz

(800) 321-0476

david@labaton.com

Source: Labaton Sucharow LLP

FAQ

What is the reason behind FedEx's stock drop on September 15, 2022?

FedEx's stock dropped over 20% after announcing it would likely miss profit targets for Q1 and revealing plans to close storefronts and offices.

How is Labaton Sucharow involved with FedEx?

Labaton Sucharow is investigating FedEx for potential violations of federal securities laws following their concerning financial results.

What financial issues did FedEx report in September 2022?

FedEx reported weaker global package delivery volumes, leading to a profit miss and cost-cutting measures like storefront closures and a hiring freeze.

What were FedEx's recent financial results for Q1?

FedEx's preliminary financial results indicated a significant drop in business, prompting a warning of missed profit targets.

How might FedEx's business conditions affect its stock performance?

The expected continuation of weak business conditions could further impact FedEx's profitability and stock value negatively.