Texas Supreme Court overturns $90 million verdict against Werner

OMAHA, Neb. - The Texas Supreme Court has reversed and dismissed a $90 million verdict against Werner Enterprises, Inc. (NASDAQ:WERN) related to a 2014 traffic accident, the transportation and logistics provider announced Friday. The verdict dismissal comes as a relief for Werner, which currently maintains a market capitalization of $1.7 billion and trades near $27.71 per share.

The court ruling overturns a 2018 verdict that had held Werner liable for an accident in which a vehicle traveling in the opposite direction lost control, crossed a median and struck a Werner tractor-trailer.

In its decision, the Texas Supreme Court determined that Werner and its driver were "a mere happenstance of place and time" and that "the sole proximate cause of this accident" was the other vehicle’s unexpected entry into oncoming highway traffic.

The company had maintained throughout the seven-year appeals process that its driver was traveling below the speed limit, remained in his lane, and had insufficient time to avoid the collision despite applying brakes.

"After seven years navigating the appellate process, we are thankful the Texas Supreme Court reached the same conclusion as law enforcement - that the Werner drivers and our company did nothing wrong," said Nathan Meisgeier, Werner’s President and Chief Legal Officer, according to the press release.

Werner, which reported 2024 revenues of $3.0 billion, provides truckload transportation and logistics services across the United States, Mexico and Canada with a fleet of modern trucks and approximately 13,000 employees. The company has maintained dividend payments for 39 consecutive years, currently offering a 2% yield. InvestingPro subscribers can access detailed financial health metrics and 8 additional key insights about Werner’s business performance and valuation.

In other recent news, Werner Enterprises reported its first-quarter 2025 earnings, missing both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.13, falling short of the forecasted $0.14, while revenue came in at $712.1 million, below the expected $738.65 million. This disappointing performance was attributed to elevated insurance costs, severe weather conditions, and increased spending on information technology. Despite these challenges, Werner has increased its cost savings target for the year to $40 million, up from $25 million, with $8 million already saved in the first quarter.

In related developments, Goldman Sachs upgraded Werner Enterprises’ stock rating from Sell to Buy, raising the price target to $39.00 from $25.00. This upgrade reflects a revised earnings projection and a more optimistic view of the company’s financial prospects. Conversely, Evercore ISI downgraded Werner’s stock rating from In Line to Underperform, lowering the price target to $21.00 from $27.00, citing weak fundamentals in the Truckload and Logistics operations.

Additionally, Werner Enterprises appointed M. Gayle Packer to its Board of Directors, filling a recently vacated Class III directorship position. Packer, currently the President and CEO of Terracon Consultants Inc., brings extensive leadership experience to the company. These developments underscore the ongoing efforts and challenges Werner faces in navigating the current economic environment.

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