NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Ryder System, Inc. (NYSE: R) on behalf of long-term stockholders following a class action complaint that was filed against Ryder on May 20, 2020. Our investigation concerns whether the board of directors of Ryder have breached their fiduciary duties to the company.
The complaint alleges that throughout the Class Period defendants misrepresented Ryder’s true financial condition by overstating the residual value of its trucking fleet, which allowed the Company to record smaller depreciation expense on those assets each year, and artificially inflated Ryder’s earnings. Defendants represented to investors that its financial results “benefited from lower depreciation associated with increased residual values” and that the Company had been “conservative” in establishing the residual values of its vehicles. While Ryder kept increasing the expected residual value of its trucking fleet, the actual amount Ryder was receiving from sales of its used trucks had started to decrease beginning in 2015. Nevertheless, when asked about the residual values of the Company’s trucks during Ryder’s July 27, 2016 earnings call, Chairman and Chief Executive Officer, Defendant Robert Sanchez stated that “I wouldn’t envision an increase or decrease in residual values out over the next four, five years.” These and similar statements during the Class Period were false and misleading because Defendants knew or recklessly disregarded that the residual values that Ryder assigned to its trucking fleet were grossly overstated, which had the effect of allowing the Company to record smaller depreciation expenses and artificially inflated Ryder’s earnings.
If you are a long-term stockholder of Ryder, have information, 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 Brandon Walker or Alexandra B. Raymond by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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