USPS
- Congressman Tim Ryan asked the SEC to investigate a $ 54 million deal in Oshkosh shares, which took place just hours before the USPS signed a contract with the company.
- The USPS has been working to update its vehicle fleet and the Workhorse Group was considered the favorite.
- “It definitely stinks and needs to be analyzed at the highest levels,” said Ryan in an interview.
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The decision by the U.S. Postal Service to award Oshkosh a contract of up to $ 6 billion to upgrade its delivery fleet is being scrutinized by Democrats, including Ohio congressman Tim Ryan.
In a letter on Monday, Ryan asked the Securities & Exchange Commission to investigate a $ 54 million deal in Oshkosh shares, made just hours before the USPS officially announced its decision to award the contract to them.
“I am writing to go over reports of what might be an unusual Oshkosh stock deal that took place less than 24 hours before Postmaster General Louis DeJoy publicly announced the contract decision in front of a House panel on February 23,” wrote Ryan.
“Specifically, an OSK purchase of more than $ 54 million [was] done 20 hours before Mr. DeJoy’s announcement, “added Ryan.
DeJoy’s announcement caused the shares of the Workhorse Group, considered the favorite to win the contract, to plummet by more than 50%. Oshkosh’s stock rose briefly after the announcement, but those gains have evaporated since then.
“It definitely stinks and needs to be analyzed at the highest levels,” Ryan said in an interview with Bloomberg.
Part of the Democrats’ resistance to Oshkosh’s contract is based on the fact that the Workhorse Group reportedly delivered a fully electric vehicle fleet to the USPS. Instead, the contract with Oshkosh will replace only a small part of the fleet with electric vehicles.
“I am writing to request that the Securities and Exchange Commission examine this issue as soon as possible,” concluded Ryan 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. Workhorse increased nearly 30% in Monday’s post-development negotiations.
Workhorse has a 10% stake in Lordstown Motors, which is based in Congressman Tim Ryan’s Ohio district.