BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Celadon Group, Inc. (“Celadon” or the “Company”) (NYSE: CGI) securities between December 30, 2016 and April 18, 2017, inclusive (the “Class Period”). Celadon investors have until June 19, 2017 to file a lead plaintiff motion.
Investors suffering losses on their Celadon investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On April 5, 2017, a report was published on SeekingAlpha.com by Prescience Point Research Group entitled, “Celadon Group: A Story That Ends At Chapter 11.” Prescience Point claimed in the report it believed Celadon overstated its second quarter 2017 tangible book value and last twelve month profits by an estimated $219 million through a series of off-balance sheet transactions and other improper accounting. In response to this publication, the price of the Company’s shares fell 13.6%, to close at $5.40 per share on April 5, 2017.
According to the Complaint filed in this class action, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Celadon’s equity contribution to its joint venture with Element Financial Corp. was $68.2 million and not $100 million as the Company reported in its public filings; (2) Celadon was being investigated by the Securities and Exchange Commission (“SEC”); and (3) consequently, Celadon’s financial statements were materially false and misleading.
Then, on May 1, 2017, after the close of trading, the Company announced that its auditor was withdrawing support for prior statements because the auditor was unable to obtain sufficient evidence to support previously issued reports. On this news shares of Celadon fell over 64% during intraday trading on May 2, 2017.
If you purchased shares of Celadon during the Class Period you may move the Court no later than June 19, 2017 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.
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