XPO to record $35M cost over inherited legal issue

Core Insights - XPO Logistics anticipates a charge of approximately $35 million in its Q3 earnings due to a longstanding insurance lawsuit related to its acquisition of Con-way in 2015 [1][4]. Group 1: Lawsuit Background - The lawsuit has been ongoing in Oregon courts for over a decade and involves environmental and product liability claims linked to Con-way's subsidiary, which was sold in 1981 [2][4]. - Allianz Global Risks US Ins. Co. initiated the lawsuit against 18 insurance companies, with Con-way joining as an interested party [3]. Group 2: Legal Proceedings - The case pertains to environmental issues at the Portland Harbor Superfund Site, with a 2021 Oregon Supreme Court decision reversing a prior verdict and sending the case back to trial [4]. - Additional proceedings related to the case occurred recently, but a final judgment has not yet been entered [4]. Group 3: Historical Context and Financial Impact - XPO has encountered multiple legal challenges since acquiring Con-way, which enabled its rapid growth to become the second-largest LTL carrier in North America [5]. - In 2016, XPO settled a separate case for $10 million with the Justice Department regarding alleged overcharging by Con-way's subsidiary, Menlo Logistics [5][6].