On December 19, 2016, Chevron Corporation (“Chevron”), FleetCor’s largest U.S. partner, announced that it had terminated its relationship with the Company and signed a long-term contract with FleetCor’s primary competitor. On this news, FleetCor’s share price fell $5.08, or 3.43%, to close at $142.96 on December 19, 2016.
On March 1, 2017, the investigative news and legal analysis company Capitol Forum published an article, based on interviews with numerous former FleetCor employees and FleetCor customers, describing how FleetCor’s business model relies on overcharging customers and padding fee income through improperly assessing late fees. On this news, the Company’s share price fell $5.25, or 3.09%, to close at $164.75 on March 1, 2017.
On April 4, 2017, Citron Research (“Citron”) published a report similarly accusing FleetCor of being a “predatory company by design, whose cores strategy is to methodically rip off its customers, using business practices and fees that are designed to deceive.” On this news, FleetCor’s share price fell $8.55, or 5.69%, to close at $141.60 on April 4, 2017.
On April 27, 2017, Citron published a follow-up report describing FleetCor’s development of a scheme to categorize its partners based on the level of improper fees the Company could charge without the customers complaining. On this news, FleetCor’s share price fell $5.73, or 3.79%, to close at $145.65 on April 27, 2017. On May 1, 2017, Chevron sued FleetCor for breach of contract. Following the filing of Chevron’s complaint, FleetCor’s share price fell $10.18, or 6.87%, to close at $138.00 on May 2, 2017.
On May 3, 2017, Citron reported on the Chevron lawsuit, stating that the lawsuit indicates that Chevron’s termination of the FleetCor contract was due to the Company’s mistreatment of its customers. On this news, FleetCor’s share price fell $6.74, or 4.88%, to close at $131.26.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP