NEW YORK, NY / ACCESSWIRE / June 8, 2017 / Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Celadon Group, Inc. ("Celadon" or the "Company") (NYSE:CGI) of the June 19, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Celadon common stock between January 27, 2016 and May 2, 2017 (the "Class Period"). The case, Teasdale v. Celadon Group, Inc. et al, No. 1:17-cv-03659, was filed on May 16, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) Celadon did not appropriately recognize revenue equipment held for sale in its financial reports; (ii) Celadon's equity contribution to its joint venture with Element Financial Corp. was $68.2 million, rather than the $100 million contribution the Company reported in its public filings; (iii) Celadon failed to maintain effective internal controls over financial reporting; (iv) Celadon is being actively investigated by the Securities and Exchange Commission ("SEC"); and (v) as a result, Celadon's publicly disseminated financial statements were materially false and misleading.
Specifically, On April 5, 2017, Prescience Point Research Group ("Prescience") published a report alleging, among other things, that Celadon "used off-balance sheet entities... and manipulative accounting practices to hide its insolvent condition from investors and creditors." On this news, Celadon's share price fell from $6.25 per share on April 4, 2017 to a closing price of $5.40 on April 5, 2017 - a $0.85 or a 13.6% drop.
Then, on April 19, 2017, Prescience reported that it received correspondence from the SEC indicating that Celadon was under investigation. On this news, Celadon's share price fell from $4.40 per share on April 18, 2017 to an intraday low of $3.85 on April 19, 2017 - a $0.55 or a 12.5% drop.
Lastly, after market close on May 1, 2017, the Company revealed that its auditor had notified the Company that it was "withdrawing its reports on the June 30, 2016, September 30, 2016, and December 31, 2016 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." On this news, Celadon's share price fell from $4.00 per share on May 1, 2017 to a closing price of $1.80 on May 2, 2017 - a $2.20 or a 55% drop.
Request more information now by clicking here: www.faruqilaw.com/CGI. There is no cost or obligation to you.
Take Action
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected].
Faruqi & Faruqi, LLP also encourages anyone with information regarding Celadon's conduct to contact the firm, including whistleblowers, former employees, shareholders, and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
[email protected]
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE: Faruqi & Faruqi, LLP