Lawsuit: Investors Injured After Revelation of Fleetcor's Conduct

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Fleetcor Technologies, Inc. and two chief officers are the defendants in a proposed class action lawsuit that claims they deceived shareholders as to the source of their financial success and that investors incurred losses when the truth of the company’s alleged misconduct was revealed. According to the lawsuit, Fleetcor is a fuel-card company that sells credit cards to be used in the purchase of gasoline and diesel fuel at gas stations. In public statements, the company allegedly claimed its financial success was due to factors such as investments, new customers, and acquired companies. In actuality, Fleetcor earns 56% of its net revenue from fees charged to customers, as opposed to the average of 10% earned by other card issuers, the complaint claims.

The plaintiff says the company’s stock began to drop when trustworthy sources revealed information about the way Fleetcor treated its customers. In December 2016, Fleetcor’s largest U.S. partner, Chevron, terminated its relationship with the defendants and signed a contract with a competitor, causing Fleetcor stock prices to drop 3%, according to the complaint. Following this announcement, various reports were published about the defendants’ “predatory” practices, resulting in further stock price declines, the suit says. Finally, Chevron allegedly filed a lawsuit in May 2017 against Fleetcor, indicating that its decision to abandon the relationship was due to the defendant’s maltreatment of its customers. Stock prices continued to drop, the suit says, injuring the company’s investors. The plaintiff says Fleetcor was dishonest in its public statements and illegally hid its allegedly fraudulent practices from the investing public.