How are energy investors positioned?
LAFAYETTE, Ind. - Wabash National Corporation (NYSE: WNC), a manufacturer of transportation and logistics solutions trading at $11.55 per share with a market capitalization of $490.3 million, announced a legal update concerning a previous jury verdict. On Monday, a Circuit Court revised the punitive damages initially set at $450 million down to $108 million, while the compensatory damages remain unchanged at $11.5 million. This amendment stems from a lawsuit involving a 2019 accident where a vehicle collided with a Wabash trailer. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 1.93, suggesting adequate resources to handle legal obligations.
The incident, which involved a 2004 Wabash trailer, occurred nearly two decades after the product’s manufacture and compliance with all applicable regulations at the time. Despite the reduction in punitive damages, Wabash maintains that the damages are excessively high and the verdict does not accurately reflect the circumstances. The company, which generated revenue of $1.95 billion in the last twelve months, asserts that the facts and law do not support the jury’s decision.
Wabash is currently reviewing all legal options available following the court’s decision. The company emphasizes its commitment to product quality and safety, assuring that this ruling will not hinder its mission to provide safer roadways through its offerings.
The Indiana-based company specializes in creating a wide array of products that support transportation from the first to the final mile. These include dry and refrigerated trailers, truck bodies, platform trailers, and tank trailers. Wabash also offers a suite of services through its nationwide network, including parts and service, Trailers as a Service (TaaS), and advanced operational tools.
This legal update is based on a recent press release statement from Wabash National Corporation.
In other recent news, Wabash National Corporation announced a significant reduction in punitive damages related to a product liability lawsuit. Originally set at $450 million, the punitive damages were reduced to $108 million by the Circuit Court of the City of St. Louis, Missouri, while maintaining $11.5 million in compensatory damages. In financial developments, DA Davidson adjusted its price target for Wabash National from $18.00 to $14.00, maintaining a Neutral rating, citing mixed signals in the freight industry and a decline in trailer shipments. Additionally, Wabash National has acquired TrailerHawk.ai to enhance its Trailers as a Service (TaaS) platform, aiming to improve cargo security and operational efficiency. The acquisition is expected to provide customers with enhanced freight protection and real-time visibility. Furthermore, Wabash National’s board of directors approved a regular quarterly dividend of $0.08 per share, set for distribution on April 24, 2025. These recent developments highlight the company’s ongoing efforts to navigate legal challenges, financial forecasts, and strategic acquisitions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.