LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Ryder System, Inc. (“Ryder” or the “Company”) (NYSE: R) common stock between July 23, 2015 and February 13, 2020, inclusive (the “Class Period”). Ryder investors have until July 20, 2020 to file a lead plaintiff motion.
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On October 29, 2019, the Company disclosed that "our residual value estimates likely exceeded the expected future values that would be realized upon the sale of power vehicles in our fleet."
As a result, Ryder recorded $177 million in additional depreciation expense in connection with the significantly lower residual value estimates.
On this news, Ryder’s stock price fell $6.68, or more than 12%, over two consecutive trading sessions to close at $48.44 per share on October 30, 2019, on unusually heavy trading volume.
Then, on February 13, 2020, the Company reported that it had incurred a total of $357 million in additional depreciation expense for 2019 due to lower residual values of its fleet, as well as a loss of $58 million on the sale of used vehicles. For fiscal 2020, Ryder expected to incur an additional $275 million in depreciation expense and an additional $20 million estimated loss on used vehicle sales.
On this news, the Company’s share price fell $10.07 per share, or 20%, over two consecutive trading sessions to close at $40.12 per share on February 14, 2020, thereby injuring investors.
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company’s financial results were inflated as a result of the Company’s practice of overstating the residual values of the vehicles in its fleet because there was no reasonable basis to believe that the Company would sell its used vehicles for the amounts that it had assigned to them; and (2) that, as a result, the Company’s residual values for its fleet of vehicles exceeded the expected future values that would be realized upon the sale of those vehicles by such a degree that the Company ultimately took a $357 million depreciation charge in 2019 related to Ryder’s reduction of its residual values to align them with the amounts for which they could realistically be sold.
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If you purchased Ryder securities during the Class Period, you may move the Court no later than June 20, 2020 to ask the Court to appoint you as lead plaintiff. 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 purchased Ryder securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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