Q: Can you comment on class action announced yesterday against TFII. Serious? Implications?
5i Research Answer:
We are not lawyers but these suit(s) are very common whenever a stock drops a lot, quickly. They essentially amount to 'management should have known business was bad and they misled investors'. They are especially hard to prove, and most fade away. On rare occasions companies will pay an immaterial settlement to make them go away. We would not consider it material nor serious, nor would we consider it significant in terms of fundamental valuation of the company.