NEW YORK, NY / ACCESSWIRE / June 20, 2017 / Pomerantz LLP announces that a class action lawsuit has been filed against Celadon Group, Inc. ("Celadon" or the "Company") (NYSE: CGI) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 17-cv-03806, is on behalf of a class consisting of investors who purchased or otherwise acquired Celadon securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Celadon securities between January 27, 2016 and May 1, 2017, both dates inclusive, you have until June 19, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Celadon, through its subsidiaries, provides long-haul, full-truckload freight service across the United States, Canada, and Mexico. The Company also provides supply chain management solutions such as warehousing and dedicated fleet services, as well as freight brokerage services.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) the Company is being actively investigated by the SEC; (iii) Celadon had errors in previously reported consolidated financial statements related to its accounting of transactions involving dispositions and acquisitions of revenue equipment; (iv) in turn, the Company lacked effective internal controls over financial reporting; and (v) as a result of the foregoing, Celadon's public statements were materially false and misleading at all relevant times.
On April 5, 2017, the market research website Seeking Alpha published a detailed report authored by a Prescience Point Research Group, entitled, "Celadon Group: A Story That Ends At Chapter 11," which, among other things, alleged that, "CGI has used...manipulative accounting practices to hide its insolvent condition from investors and creditors."
On this news, Celadon's share price fell $0.85, or 13.6%, to close at $5.40 on April 5, 2017.
On April 19, 2017, the same prominent market research group published another report entitled, "FOIA Requests Reveal CGI as the Subject of an Active SEC Investigation," which reported that the research group was denied information about Celadon sought under the Freedom of Information Act ("FOIA") due to an ongoing SEC investigation.
On this news, Celadon's share price fell $0.20 or 4.55%, to close at $4.20 on April 19, 2017.
On May 1, 2017, post-market, Celadon issued a Current Report filed on Form 8-K in the SEC, stating that "the Company's financial statements for the fiscal year ended June 30, 2016 and quarters ended September 30 and December 31, 2016, and related reports of [Celadon's auditor], should not be relied upon."
On this news, Celadon's share price fell $2.20, or 55%, to close at $1.80 on May 2, 2017.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP