RADNOR, Pa.--(BUSINESS WIRE)--The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against Celadon Group Inc. (NYSE: CGI) (“Celadon” or the “Company”) on behalf of purchasers of the Company’s securities between January 27, 2016 and May 2, 2017, inclusive (the “Class Period”).
Celadon shareholders who purchased securities during the Class Period may, no later than June 19, 2017, petition the Court to be appointed as a lead plaintiff representative of the class.
Shareholders who wish to discuss this action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys D. Seamus Kaskela or Adrienne O. Bell at (888) 299 – 7706, or online at: https://www.ktmc.com/new-cases/celadon-group-inc#join.
Celadon, through its subsidiaries, provides long-haul and full-truckload freight service throughout the United States, Canada, and Mexico.
The shareholder class action complaint alleges that Celadon and certain of its senior executive officers made materially false and misleading statements to investors about the Company’s business, operations, and prospects during the Class Period. Among other things, the complaint alleges that Celadon did not appropriately recognize revenue equipment held for sale in its financial reports, and that the Company improperly represented the amount of its equity contribution to a joint venture.
On April 5, 2017, Seeking Alpha published a detailed report from Prescience Point Research Group (“Prescience Point”) entitled “Celadon Group: A Story That Ends At Chapter 11.” That report alleged, among other things, that Celadon “has used … manipulative accounting practices to hide its insolvent condition from investors and creditors.” Following this news, shares of the Company’s stock declined 13.6%, to close on April 5, 2017 at $5.40 per share.
On April 19, 2017, Prescience Point published another report, entitled “FOIA Requests Reveal CGI as the Subject of an Active SEC Investigation,” which reported that the research group was denied information about Celadon due to an apparent ongoing SEC investigation. Following this news, shares of the Company’s stock declined an additional 4.5%, to close on April 19, 2017 at $4.20 per share.
Finally, on May 1, 2017, Celadon disclosed that its auditor had notified the Company that it was “withdrawing its reports on the … financial statements of the Company, and that those reports should no longer be relied upon” due to issues relating to transactions involving “revenue equipment held for sale.” Following this news, shares of the Company’s stock declined an additional $2.20 per share, or 55%, to close on May 2, 2017 at $1.80 per share.
Celadon shareholders may, no later than June 19, 2017, petition the Court to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a 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 in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.