A labor union pension fund has filed a directors and officers liability lawsuit against FedEx Corp., charging the impact of the 2017 NotPetya virus on a recent acquisition impacted FedEx’s stock price.
The putative securities fraud class action filed by the Provincetown, Rhode Island-based Rhode Island Laborers’ Pension Fund against Memphis, Tennessee-based FedEx and its directors and officers, pointed to the company’s 2017 $4.8 billion acquisition of Hoofdorp, Netherlands-based TNT Express NV, according to the lawsuit filed Wednesday in U.S. District Court in New York in Rhode Island Laborers’ Pension Fund v. FedEx Corp. et al.
According to the lawsuit, after the acquisition closed, FedEx embarked on an aggressive strategy to integrate its legacy European operations with TNT. But on June 27, 2017, TNT’s operations were “crippled” by the NotPetya malware virus attack, which spread throughout TNT’s systems and paralyzed its systems.
“Throughout the Class Period, defendants continually assured investors about its recovery from the Cyberattack and any negative impact from the attack was minimal,” according to the lawsuit.
“The…
