WASHINGTON, DC (June 8, 2017) — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed against FleetCor Technologies, Inc. (“FleetCor” or the “Company”) (NYSE:FLT) and certain of its senior executives. The class action is on behalf of investors who purchased or otherwise acquired FleetCor, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934. The case has been docketed under 17-cv-02207 in United States District Court for the Northern District of Georgia.
If you are a shareholder who purchased FleetCor securities between February 5, 2016 and May 2, 2017 (“Class Period”), you have until August 14, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. The Lead Plaintiff is a representative for absent members of the class.
Investors do not need to seek appointment as Lead Plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action. Contact USMA to discuss this action.
Background on FleetCor
FleetCor is a global provider of workforce payments products. The Company’s primary products include fuel card payments product solutions, corporate payments products, toll products, lodging cards and gift cards.
A fuel card is essentially a credit card used most commonly for the purchase of gasoline and diesel fuel at gas stations. FleetCor provides these fuel cards purportedly to allow fleet operators to save money when card users purchase gas. During the Class Period, FleetCor also partnered with many well known fleet operators, oil companies, and petroleum marketers, such as Chevron/Texaco—the Company’s largest partner in the U.S.—to develop and implement branded fuel card programs. According to investment firm Citron Research, while card issuers on average earn 10% of their net revenue from charging fees to customers, FleetCor generates 56% of its net revenue from such fee income.
Allegations Against FleetCor
According to the initial lawsuit complaint, FleetCor misled investors with regard to the sources of and reasons for its earnings and growth, attributing the Company’s success to factors such as investments in the Company’s sales infrastructure, the conversion of new customers, and the performance of acquired companies, among other things. FleetCor also falsely stated that it clearly discloses its fees to customers and that its business is focused on helping employers control spending and save money.
In reality, the Company’s actual performance was based on its fraudulent overcharging of customers, dissemination of misleading marketing materials, and reliance on predatory sales practices. Further, FleetCor’s fees were not clearly disclosed in its contracts and, contrary to its representations to investors and customers, FleetCor’s illicit business practices did not help fleet operators control spending or save money.
Investors began to learn the truth regarding FleetCor’s improper practices through a series of corrective disclosures that caused substantial declines the Company’s stock price.
U.S. Market Advisors Law Group PLLC is a national law firm based in Washington, D.C. The firm represents investors worldwide in U.S. securities class action lawsuits.
David P. Abel