Roadrunner investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Roadrunner offers truck freight transportation services. The Company operates through three segments: Truckload Logistics, Less-than-Truckload and Global Solutions.
The shareholder class action 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 are a member of the class described above, you may no later than April 3, 2017, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org. For more information about Kessler Topaz Meltzer & Check, LLP, please visit our website at http://www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
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