Roadrunner Transportation Systems, Inc.
Period: May 8, 2014 to Jan 30, 2017
Lead Plaintiff Deadline: Apr 3, 2017
Summary of Case:
A securities class action has been filed against Roadrunner Transportation Systems, Inc. ("RRTS") on behalf of purchasers of the Company's securities between May 8, 2014 and January 30, 2017. This case has been filed in the USDC - Eastern District of Wisconsin .
The Complaint alleges that Roadrunner and certain of its executive officers made a series of materially false and misleading statements and/or failed to disclose material adverse facts about the Company's business, operations, and prospects to investors during the Class Period. Specifically, the defendants are alleged to have made false and misleading statements and/or failed to disclose that: (1) the Company lacked effective internal controls over financial reporting; (2) the Company's financial statements dating back to the beginning of 2014 overstated the estimated results of operations; (3) the Company's financial statements contained errors relating to unrecorded expenses from unreconciled balance sheet accounts including cash, driver and other receivables, and linehaul and other driver payables; and (4) the Company's financial statements dating back to the beginning of 2014 were not reliable.
On January 30, 2017, Roadrunner disclosed that, as a result of "information obtained to date in connection with an ongoing investigation" into the Company's accounting, certain of Roadrunner's previously issued financial statements should no longer be relied upon due to misstatements. Additionally, the Company reported that "Roadrunner has identified various accounting errors that it currently estimates will require prior period adjustments to Roadrunner's results of operations of between $20 million and $25 million." Further, Roadrunner reported that it would need to record a goodwill impairment charge, estimated "in the range of $175 million to $200 million," in its upcoming quarterly financial report.
On this news, shares of the Company's stock fell $3.62 per share, or over 31%, to close on January 31, 2017 at $7.92 per share, on unusually heavy trading volume.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.