Landstar System Inc. ((NASDAQ: LSTR) Found at the center of a significant fraud research on the supply chain, leading to a significant review of their earnings guide from the first quarter of 2025. Investors responded to revelation, revealed on a Wednesday 8-K at the end of Wednesday mudWith Landstar’s actions that were successful in the last 24 hours.

According to Landstar’s recent updateThe company initially foreseen in the first quarter of 2025 by ACTION between 90 cents and 95 cents, assuming that the revenue remained at the middle of its prior orientation. However, this perspective changed dramatically after the company uncovered a fraud incident in the supply chain during the final fiscal week of the quarter. Although the details are kept in investigation, it is believed that fraud meant “a deterioration of commercial accounts to be charged registered in the balance of December 28, 2024 of Landstar”. Landstar also said that the event “does not imply the main North -American Truck Services”.

Landstar now hopes that this fraud will adversely affect the EPS in an additional 35-50 cents. Before taking into account any potential insurance or other recoveries, this results in a financial success of about $ 12.5 million to $ 17.9 million, depending on the company’s 35.7 million actions. Its orientation before the quarter was 1.05 to $ 1.25 per action.

Beyond the direct financial impact of fraud, Landstar is also affecting highly high insurance costs and claims, which is largely driven by burden on theft and truck accident claims, according to 8-K. These factors had already pressured the company’s background line before fraud was discovered.

The rest of Landstar’s statement on his finances and fraud was mixed. He said that in the first eight weeks of the quarter, the charges passed by the company dropped by 4% compared to the corresponding period of 2024. Its orientation before the first quarter was that the company would drop from 2% to 7% of the passed charges.

Landstar said that the revenue per load during the eight weeks of 2025 was approximately one year. The loads were transmitted to what he described as “designated/platform platform equipment”, allegedly flat, had a 4% increase in income per load, while vans loads decreased by 2%.

Additionally, Landstar bought about $ 60 million of shares during the first quarter of 2025, demonstrating confidence in his long -term perspectives despite current turbulence. However, this movement has done little to alleviate the anxiety of investors following the dissemination of fraud.

Investors responded quickly. From Thursday, the company’s shares have dropped from 7.87%, lowering $ 11.95 to $ 139.98. Actions were negotiated up to $ 150.89 before falling up to a minimum of $ 1392.