NEW YORK, Jan. 15, 2016 /PRNewswire/ -- Bernstein Liebhard LLP announced today that only 4 days remain for investors to file a motion for lead plaintiff in a class action pending against Roadrunner Transportation Systems, Inc. ("Roadrunner" or the "Company") (NYSE: RRTS). Plaintiffs in the action allege claims on behalf of a class (the "Class") of investors who purchased Roadrunner securities between July 30, 2015 and October 26, 2015 (the "Class Period"). Plaintiffs allege that the Company, certain officers, and a director violated the federal securities laws by making misstatements during the Class Period.
Roadrunner is a transportation and logistics service provider. According to the lawsuit, throughout the Class Period defendants issued materially false and misleading statements to investors and/or failed to disclose that: (1) the avian flu epidemic would have an adverse impact on Roadrunner's financial condition; and (2) as a result, defendants' statements about Roadrunner's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On October 26, 2015, after the market closed, the Company announced that it was radically lowering its third quarter diluted earnings guidance to between $0.14 and $0.17 per share – down from previously announced guidance of between $0.43 and $0.47 per share – due, in part, to the avian flu epidemic. On this news, Roadrunner shares plummeted by as much as $8.07, or more than 45%, to $9.60 per share during intra-day trading on October 27, 2015, thereby injuring investors.
During the Class Period, on August 7, 2015, Roadrunner Chairman of the Board Scott Rued sold 2,000,000 Roadrunner shares through various investment entities at $24.34 per share for proceeds of over $48,000,000.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Roadrunner securities during the Class Period. If you invested in Roadrunner securities as described above, and lost money on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than January 19, 2016.
A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as a Roadrunner investor and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs' firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Eastern District of New York.
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SOURCE Bernstein Liebhard LLP