LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) reminds investors of the June 19, 2017 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Celadon Group, Inc. (“Celadon” or the “Company”) (NYSE: CGI) securities between January 27, 2016 and May 1, 2017, inclusive (the “Class Period”). Celadon investors have until June 19, 2017 to file a lead plaintiff motion in this class action.
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 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.
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If you purchased or otherwise acquired Celadon shares during the Class Period you may move the Court no later than June 19, 2017 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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