Werner Enterprises Announces Recent Settlement of Motor Vehicle Accident Lawsuit

Rhea-AI Summary

Werner Enterprises (Nasdaq: WERN) has reached a $150M settlement concerning a tragic motor vehicle accident lawsuit in Texas. The incident, which occurred in May 2020, involved a Werner truck striking a parked passenger vehicle, resulting in the deaths of two children left inside. Although Werner disputes the allegations, they opted for a settlement to prevent protracted litigation and potential larger 'nuclear verdicts.' The settlement will be covered by Werner and its insurers. The company maintains its commitment to safety and responsibility in operations.

Positive

• Settlement of $150M reduces potential legal risks and uncertainty.
• Decision to settle demonstrates proactive management in protecting shareholders' interests.

Negative

• The significant settlement amount may impact short-term financials.
• Public perception could be negatively affected due to the tragic nature of the incident.

OMAHA, Neb., July 28, 2022 (GLOBE NEWSWIRE) -- Werner Enterprises, Inc. (Nasdaq: WERN), one of the nation’s largest transportation and logistics companies, announced the recent $150M settlement of a motor vehicle accident lawsuit in Texas.

In May 2020, a passenger vehicle traveling on Interstate 30 near Sulphur Springs, Texas, stopped in the travel lane of the highway at approximately 5:00 a.m. Three adults walked away from the vehicle, leaving two children inside. Shortly thereafter, a Werner truck (traveling below the speed limit) struck the parked vehicle. The two children tragically died in the resulting collision. The investigating officers placed no fault on Werner or its driver, and one of the adults from the passenger vehicle was criminally charged in connection with the deaths of the children. The parents of the children subsequently filed a lawsuit against Werner and its driver. Out of respect for the family, Werner is not publicly disclosing the names of the individuals involved.

Werner disputes the plaintiffs’ allegations but chose to voluntarily resolve this matter by settlement. “The circumstances of this tragic accident were set in motion by the decision to park a vehicle on a highway in the lane of travel, as indicated in the investigating officer’s report,” said Werner’s Chief Legal Officer Nathan Meisgeier. “Nonetheless, corporate defendants are facing ‘nuclear verdicts’ in courtrooms across the country, including in Texas. Werner believes it prudent to resolve this case, to bring closure for the family affected by this tragic accident and to protect Werner, its employees, and its shareholders. Our sincere prayers and condolences remain with the family.” The settlement will be funded by Werner and its insurance companies.

“Werner’s company motto is ‘Nothing we do is worth getting hurt or hurting others,’ and we will continue to operate with our safety focus each and every day,” Meisgeier said.

About Werner Enterprises

Werner Enterprises, Inc. delivers superior truckload transportation and logistics services to customers across the United States, Mexico and Canada. With 2021 revenues of $2.7 billion, an industry-leading modern truck and trailer fleet, nearly 14,000 talented associates and our innovative Werner EDGE technology, we are an essential solutions provider for customers who value the integrity of their supply chain and require safe and exceptional on-time service. Werner provides Dedicated and One-Way Truckload services as well as Logistics services that include truckload brokerage, freight management, intermodal and final mile. As an industry leader, Werner is deeply committed to promoting sustainability and supporting diversity, equity and inclusion.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on information presently available to the Company’s management and are current only as of the date made. Actual results could also differ materially from those anticipated as a result of a number of factors, including, but not limited to, those discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and subsequently filed Quarterly Reports on Form 10-Q. For those reasons, undue reliance should not be placed on any forward-looking statement. The Company assumes no duty or obligation to update or revise any forward-looking statement, although it may do so from time to time as management believes is warranted or as may be required by applicable securities law. Any such updates or revisions may be made by filing reports with the U.S. Securities and Exchange Commission (“SEC”), through the issuance of press releases or by other methods of public disclosure.

Contact:

Nathan Meisgeier
Executive Vice President and
Chief Legal Officer
(402) 894-3193

FAQ

What was the amount of the settlement reached by Werner Enterprises regarding the lawsuit?

Werner Enterprises reached a settlement of $150 million regarding the lawsuit.

What caused the motor vehicle accident involving Werner's truck?

The accident was caused by a parked passenger vehicle left in the travel lane of the highway, which a Werner truck subsequently struck.

When did the motor vehicle accident involving Werner Enterprises occur?

The motor vehicle accident occurred in May 2020.

What implications does the lawsuit settlement have for Werner Enterprises stock?

The $150 million settlement could impact short-term financial performance and public perception, potentially affecting stock performance.

How does Werner Enterprises plan to manage its safety practices after the accident?

Werner Enterprises continues to operate with a strong focus on safety, adhering to their motto that emphasizes the importance of preventing harm.