Key Takeaways
Pomerantz LLP, a law firm specializing in corporate and securities class actions, has launched an investigation into Forward Air Corporation (NASDAQ: FWRD) concerning potential securities fraud, following a 43.05% collapse in the company's stock price.
"Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980," the law firm said in a statement announcing the investigation.
The probe follows Forward Air's first-quarter 2026 financial report on May 7, which disclosed a series of negative developments. The company reported operating revenues of $582.0 million, a 5.1% decrease from the prior-year period, and a net loss of $40.2 million. The company also revealed it was in discussions with one of its largest customers about transitioning a significant portion of its business away from Forward Air. That customer represented about $250 million of the company's revenue for the 2025 fiscal year.
On the news, Forward Air's stock price fell $7.46 per share to close at $9.87 on May 8, 2026. The company also disclosed that its review of strategic alternatives, including a potential sale, had concluded without any actionable proposals, partly due to the developments with its major customer.
The investigation by a prominent class-action firm suggests a high probability of a lawsuit, adding significant legal and financial pressure on the company. The stock's collapse to single digits reflects severe damage to investor confidence, with the next catalyst likely being either the formal filing of a class-action complaint or a corporate update on the customer transition.
This article is for informational purposes only and does not constitute investment advice.
