SAN DIEGO--(BUSINESS WIRE)--Haeggquist & Eck, LLP, a leading shareholder rights litigation firm, is investigating whether certain directors and officers of Roadrunner Transportation Systems, Inc. (NYSE: RRTS) (“Roadrunner”) breached their fiduciary duties to Roadrunner and its shareholders.
A federal class action complaint alleges that Roadrunner and certain of its officers and directors made false and misleading statements and/or failed to disclose that: (1) Roadrunner lacked effective internal controls over financial reporting; (2) Roadrunner’s financial statements dating back to the beginning of 2014 overstated the estimated results of operations; (3) Roadrunner’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) Roadrunner’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 Roadrunner’s accounting, certain of its previously issued financial statements should no longer be relied upon due to misstatements. Additionally, it 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 in its upcoming quarterly financial report it would need to record a goodwill impairment charge, “in the range of $175 million to $200 million.”
On this news, shares of Roadrunner’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.
What You Can Do
If you are a Roadrunner shareholder, you may have legal claims against its directors and officers. If you wish to discuss this investigation or have questions, please contact attorney Amber Eck at 619-342-8000 or e-mail her at ambere@haelaw.com. There is no cost or obligation to you.
Haeggquist & Eck, LLP is a nationally recognized leader in shareholder rights law. The firm represents individual investors in shareholder derivative lawsuits, and members of the firm have helped shareholders recover more than $1 billion of value for themselves and the companies in which they have invested.
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