USPS
- Congressman Tim Ryan asked the SEC to investigate a $ 54 million trade in Oshkosh shares that took place hours before the USPS awarded the firm a contract.
- The USPS worked to upgrade its fleet of vehicles and Workhorse Group was considered the favorite.
- “It definitely stinks and needs to be looked at at the highest levels,” Ryan said in an interview.
- Sign up here for our daily newsletter, 10 things before the opening clock.
The U.S. Postal Service’s decision to award a contract worth as much as $ 6 billion to Oshkosh to upgrade its delivery fleet is being scrutinized by Democrats, including Tim Ryan, of Congressman Ohio.
In a letter Monday, Ryan asked the Securities & Exchange Commission to investigate a $ 54 million deal in Oshkosh shares made hours before the USPS officially announced its decision to award the contract to them.
“I am writing to report on the unusual trading of Oshkosh shares that took place less than 24 hours before Postmaster General Louis DeJoy publicly announced the contract decision on February 23,” Ryan wrote.
“Specifically a purchase of more than $ 54 million from OSK [was] 20 hours before the announcement of mr. DeJoy made, ‘Ryan added.
In the announcement by DeJoy, shares of Workhorse Group, which was considered the favorite to win the contract, are dipped by more than 50%. Following the announcement, Oshkosh’s shares rose sharply, but profits have since evaporated.
“It definitely stinks and needs to be looked at at the highest levels,” Ryan said in an interview with Bloomberg.
Part of the repeal of the Oshkosh contract by Democrats is based on the fact that Workhorse Group would have supplied an electric fleet of vehicles to the USPS. Instead, the awarded Oshkosh contract will replace only a small portion of the fleet with electric vehicles.
“I am writing to request that the Securities and Exchange Commission investigate this matter as soon as possible,” Ryan concluded in his letter.
On Monday, a group of Democrats in the House of Representatives introduced legislation that could give Workhorse another chance to sell electric vehicles to the USPS. Following the development, Workhorse jumped nearly 30% in Monday transactions.
Workhorse owns a 10% stake in Lordstown Motors, which is headquartered in Ohio District Congressman Tim Ryan.