Spruce Point believes that XPO Logistics, Inc. (NYSE: XPO or "the Company") is a classic stock promotion orchestrated by a web of individuals with checkered pasts, including ties to convicted felons, and an individual that abetted a Ponzi-scheme. As a result, we see 40%-60% intermediate downside risk to $24.00-$36.00 per share, with up to 100% long-term downside risk as a result of a flawed business model, questionable governance, egregious financial representation, increased regulatory scrutiny, and a loss of confidence in management.