NEW YORK, Feb. 1, 2016 /PRNewswire/ -- Harwood Feffer LLP (www.hfesq.com) is investigating potential claims against the board of directors of Swift Transportation Company ("Swift" or the "Company") (NYSE: SWFT), concerning whether the board has breached its fiduciary duties to shareholders.
On January 28, 2016, The Wall Street Journal reported that Swift's CEO, Jerry Moyes, has pledged more than $600 million of his Swift stock, a quarter of the Company's outstanding shares, as security for loans. This arrangement exceeds the limits on margin-loan collateral set by Swift's board. However, the board has granted Moyes multiple extensions to meet the limits.
After spending $100 million on share repurchases in November 2015 and January 2016, Moyes announced on January 26, 2016 that he would seek to have Swift spend an additional $200 million on share buybacks. The buybacks would retire roughly 9% of Swift's stock and ease the pressure on Moyes's margin loans. While beneficial to Moyes, this is harmful to the Company.
Our investigation concerns whether the Company board of directors has breached its fiduciary duties to shareholders, grossly mismanaged the Company, and/or committed abuses of control in connection with the foregoing.
If you own Swift shares and wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:
Robert I. Harwood, Esq. Benjamin I. Sachs-Michaels, Esq. Harwood Feffer LLP 488 Madison Avenue New York, New York 10022 Phone Numbers: (877) 935-7400 (212)935-7400 Email: email@example.com Website: http://www.hfesq.com Follow us on Twitter: @HarwoodFeffer
Harwood Feffer has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in federal and state courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for more information about the firm.
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SOURCE Harwood Feffer LLP