A law office explained that it filed a securities class action lawsuit against a railroad company due to potential violations of federal securities laws.
Robbins Arroyo, LLP, noted that the lawsuit was filed against Kansas City Southern in the U.S. District Court for the Western District of Missouri. This includes all shareholders who acquired interests in the company during the class period between Oct. 18, 2013, and Feb. 18, 2014.
The allegations center around the company's board of directors and officers potentially violating the Securities Exchange Act of 1934. This is because the company made an announcement on Jan. 24, 2014, that its fiscal results for the fourth quarter would be weaker than initially anticipated. This saw its stock drop approximately 15 percent – or $17.70 – to $99.49 per share. The company also explained that its fiscal earnings would be less than 20 percent, down from the investment community projection of 26 percent for the 2014 fiscal year.
Another item that hurt the stock further was the Mexican government's announcement that its legislature approved a bill that will increase competition for freight and passenger rail lines. Due to this, on Feb. 18, 2014, the company's stock fell $4 to $91.67 per share.
Shareholders who are interested in learning more about the case and the litigation process are welcome to discuss these matters with the law firm. Darnell Donahue is the best person to speak with, and he can be reached by telephone or email. Additionally, there is more information available on the law office's website.
Second lawsuit filed
Another law firm explained that it filed a securities class action lawsuit in the same court due to many of the aforementioned issues.
Gainey McKenna and Egleston explained that the litigation was filed in the same court for the same class period.
It is possible for shareholders to become lead plaintiff in the case, though they will have to file the necessary paperwork with the court by June 16, 2014. This position is not mandatory, and shareholders still have the right to remain absent class members.
For those stockholders who are interested in learning more about the case, the process and how it may affect their rights, speaking with the law office is an option. Both Gregory Egleston and Thomas McKenna can be contacted by telephone or email.