At a Glance

  • Hub Group announced in a press release on Thursday that Chief Financial Officer Kevin Beth and Chief Operating Officer Brian Meents are leaving their roles effective immediately. The personnel changes are part of the company's ongoing "corrective measures" in response to a $77 million accounting error disclosed in February. The company is headquartered in Oak Brook, Illinois.
  • According to the press release, alongside Beth's departure, Hub Group appointed Todd Heeter as interim Chief Financial Officer and Treasurer, effective immediately. The company stated that the Chief Operating Officer's responsibilities are currently being shared by the senior leadership team. Beth and Meents will provide support in an "advisory capacity" during the transition period.
  • "The Hub Group Board of Directors views the integrity of the company's financial statements as a key pillar of our continued success," said Lead Director Peter McNitt and Audit Committee Chair Gary Yablon in a joint statement. "We will continue to prioritize the finalization of the financial statements and submit periodic reports to the U.S. Securities and Exchange Commission as soon as possible."

Deeper Dive

Beth and Meents are both long-tenured employees of the logistics management services provider. According to Meents' LinkedIn profile, he joined Hub Group in January 2016 as Vice President of Account Management. Beth worked at Hub Group for 22 years, becoming CFO in January 2024 and leaving after approximately two years in the role. Previously, he served as the company's Chief Accounting Officer for three years starting in July 2020, and as Controller and Assistant Treasurer for 16 years starting in October 2003.

Beth's interim successor, Heeter, served as Chief Financial Officer of NorthMark Strategies, an alternative investment firm, for about two years before joining Hub Group. He joined the company in 2023 to "lead a comprehensive, multi-year, enterprise-wide finance organization transformation," according to his LinkedIn profile. Prior to NorthMark, he was CEO and founder of The Heeter Group, a firm providing CFO, Chief Accounting Officer, and strategic consulting services to companies.

Executive Chairman David Yeager said in a statement in the press release that the board "appreciates Todd joining Hub Group and serving as interim CFO and Treasurer while we work through the restatement of our financial statements and strengthen our internal accounting controls."

Heeter joins as the company continues its efforts to accurately restate financial statements for the past three years, following the discovery of a $77 million error related to transportation costs.

According to a February 5 press release, while preparing financial statements for the year ending December 31, 2025, the company discovered that its purchased transportation costs and accounts payable for the first nine months of 2025 were understated. The total cost reduction related to the issue was $77 million.

Hub Group subsequently evaluated the error and its impact on the first three quarters of 2025 and fiscal years 2024 and 2023, and noted in a February SEC filing that its financial statements for the first nine months of 2025 should no longer be relied upon. Due to the error and ongoing review of financial reporting disclosures and internal controls, the company has delayed filing its 2025 annual 10-K report and subsequent quarterly reports, according to SEC filings.

On May 11, the company's audit committee issued a notice stating that previously filed financial statements, including annual reports for the years ended December 31, 2024, and December 31, 2023, contained "material misstatements and should no longer be relied upon," according to company filings. The decision was made after the audit committee's review found that certain transactions were recorded prematurely or "incorrectly recognized, or lacked sufficient support." Hub Group is continuing to review its accounting processes and is in ongoing discussions with registered public accounting firm Ernst & Young regarding the matter.

The accounting investigation has also raised shareholder concerns: after the error was first reported in February, law firm Hagens Berman announced an investigation into Hub Group to determine whether it "deliberately understated" expenses, according to a press release on its website at the time. The law firm stated that Hub Group's stock fell as much as 27% in trading the day after the initial error report, erasing approximately $800 million in market value.

Hagens Berman said in a May 13 press release that it would continue investigating whether Hub Group misled investors. This came shortly after the company reported that its 2024 and 2023 results were unreliable, and the logistics management company announced it would delay filing its first-quarter 2026 report. "Now that we know Hub Group's admitted improper accounting dates back to fiscal year 2023, we are investigating whether the company may have deliberately understated expenses and monitoring whether other financial statement accounts were misstated," said Reed Kathrein, partner and head of investigations at Hagens Berman, in a statement.