FleetCor Technologies, Inc.
Robbins Arroyo LLP: FleetCor Technologies, Inc. (FLT) Misled Shareholders According to a Shareholder Derivative Complaint
Robbins Arroyo LLP announces that a shareholder derivative complaint was filed on behalf of FleetCor Technologies, Inc. (NYSE: FLT). The complaint is brought against certain current and former officers and directors of FleetCor for alleged violations of the Securities Exchange Act of 1934, breaches of fiduciary duties, and unjust enrichment from at least February 4, 2016 to the present. FleetCor provides fuel cards, commercial payment and data solutions, gift card and stored value solutions, and workforce payment products and services primarily in the United States, Brazil, and the United Kingdom.
FleetCor Accused of Engaging in Fraudulent Billing Practices
According to the complaint, FleetCor asserted that the company’s growth came from investments in the company’s sales infrastructure, the conversion of new customers, and the performance of acquired companies, among other things. The company failed to disclose that the true reasons for the company’s earnings and growth were from its fraudulent billing practices, dissemination of misleading marketing materials, and predatory sales tactics. Investors began to learn the truth about the company’s improper practices on December 19, 2016, when Chevron – FleetCor’s largest U.S. partner – announced that it was terminating its 10-year relationship with the company and signed a long-term contract with FleetCor’s primary competitor, WEX, Inc. Between March 1, 2017 and April 27, 2017, several published reports accused FleetCor of fraudulent billing practices and predatory sales tactics. On May 1, 2017, Chevron sued FleetCor in Texas State court for breach of contract based in part on the company’s mistreatment of customers. FleetCor’s stock price fell over 23% in a two-month span, from $170 per share on February 28, 2017, to close at $131.26 per share on May 3, 2017.
FleetCor Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.