A shareholder class action lawsuit has been filed against Kansas City Southern on behalf of purchasers of the common stock of KCS between Oct. 18, 2013, and Feb. 18, 2014.
The Complaint alleges that KCS and certain of its executive officers made a series of false and misleading statements in violation of the Securities Exchange Act of 1934, causing shareholders to purchase KCS common stock at artificially inflated prices during the Class Period.
On Jan. 24, KCS reported its fourth-quarter fiscal 2013 financial and operational results, which missed analyst expectations, and provided an earnings growth outlook for fiscal 2014 that was also below expectations. On this news, shares of the Company’s stock declined $17.79 per share, or over 15 percent, to close on Jan. 24 at $99.49 per share, lawyers said.
On Feb. 18, the market discovered that the lower house of the Mexican legislature had approved a new bill to increase rail competition in Mexico by giving third-party companies access to KCS’s exclusive freight and passenger rail networks, lawyers said. On this news, shares of the company’s stock declined an additional $4.29 per share, or almost 4.5 percent, to close on Feb. 18 at $91.67 per share.