Swift Transportation Company
Robbins Arroyo LLP Is Investigating the Officers and Directors of Swift Transportation Company (SWFT) on Behalf of Shareholders
Robbins Arroyo LLP is investigating whether certain officers and directors of Swift Transportation Company (NYSE: SWFT) violated federal securities laws by issuing materially misleading business information to the investing public. Swift Transportation operates as a multi-faceted transportation services company in North America.
Swift Transportation’s CEO Exceeds Company Limits on Borrowing
On January 28, 2016, The Wall Street Journal reported that Swift’s CEO, Jerry Moyes, pledged more than $600 million of his holdings in Swift—a quarter of the company’s outstanding shares—as collateral for loans or loan-like contracts. This amount is more than the 10% limit on the amount of personal Swift holdings that directors and senior officers may pledge as collateral for loans, and the Board of Directors has repeatedly granted Moyes extensions of time to meet this limit. When the company’s stock fell 52% in 2015, the fall triggered margin calls, which Moyes sometimes dealt with by pledging more Swift shares.
On January 26, 2016, after spending $100 million on share repurchases in November 2015 and January 2016, Moyes announced that he wanted Swift to spend $200 million buying back more shares, a buyback that would retire approximately 9% of Swift’s stock, supporting its price and easing pressure on Moyes’s margin loans. Notably, Swift’s stock is down by 40% from a year ago.
Swift Transportation Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.