Key Takeaways:
(New York) – Forward Air Corporation (NASDAQ:FWRD) shares plunged 43 percent after the company disclosed a major customer may leave and that a strategic review failed to produce any offers, prompting law firms to launch investigations into potential securities law violations.
The law firm of Kirby McInerney LLP announced it is investigating the company and its senior management for possible violations of federal securities laws on behalf of investors. Bragar Eagel & Squire, P.C. has also launched a similar investigation into the matter.
The announcements followed Forward Air’s first-quarter 2026 financial results released on May 7. The company reported operating revenues of $582.0 million, a 5.1 percent decline from the prior year, and a net loss of $40.2 million, or $1.09 per share. Following the news, the stock price fell from $17.33 to close at $9.87 on May 8.
Compounding the weak results, Forward Air disclosed it was in active discussions with one of its largest customers about "the transition of a significant portion of their business." The company stated the customer accounted for approximately $250 million of its revenue for the fiscal year ended December 31, 2025. The company also revealed that its strategic alternatives review process had concluded without any "actionable proposals for a sale of the Company."
The investigations will focus on whether Forward Air and its management violated federal securities laws or engaged in other unlawful business practices. The law firms have encouraged investors who purchased Forward Air securities to contact them to discuss their rights.
The sharp decline and subsequent legal scrutiny create significant uncertainty for the logistics company. Investors will be closely watching for further disclosures regarding the customer transition and the outcome of the legal investigations.
This article is for informational purposes only and does not constitute investment advice.
