BERWYN, Pa., Feb. 2, 2017 /PRNewswire/ -- RM LAW, P.C. announces that a class action lawsuit has been filed in United States District Court for the Eastern District of Wisconsin on behalf of all persons or entities that purchased Roadrunner Transportation Systems, Inc. ("Roadrunner" or the "Company") (NYSE: RRTS) securities between May 8, 2014 and January 30, 2017, inclusive (the "Class Period").
Roadrunner shareholders may, no later than April 3, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Roadrunner and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, visit: www.maniskas.com.
The complaint charges Roadrunner and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Roadrunner provides asset-light transportation and logistics services provider that purports to offer a comprehensive suite of global supply chain solutions, including truckload logistics, customized and expedited less-than-truckload, intermodal solutions, freight consolidation, inventory management, expedited services, air freight, international freight forwarding, customs brokerage, and transportation management solutions.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose the following: (i) the Company's Morgan Southern and Bruenger subsidiaries had engaged in improper accounting practices; (ii) Roadrunner lacked effective internal controls; (iii) as a result, Roadrunner overstated its earnings throughout the Class Period by tens of millions of dollars; and (iv) as a result of the foregoing, Roadrunner's financial statements were materially false and misleading at all relevant times.
On January 30, 2017, post-market, Roadrunner announced that in November 2016, the Company "was made aware of various potential accounting discrepancies at its Morgan Southern and Bruenger operating subsidiaries" and commenced an investigation with the assistance of outside counsel. While the investigation remains ongoing, Roadrunner advised investors that the Company "currently estimates it will require prior period adjustments to Roadrunner's results of operations of between $20 million and $25 million" in the Company's annual and quarterly financial reporting for the years 2014, 2015, and 2016. Roadrunner advised investors that the errors "principally relate to unrecorded expenses from unreconciled balance sheet accounts including cash, driver and other receivables, and linehaul and other driver payables," and that the Company is reassessing its internal controls over financial reporting and its compliance programs.
On this news, Roadrunner's share price fell $3.62, or 31.37%, to close at $7.92 on January 31, 2017.
If you are a member of the class, you may, no later than April 3, 2017, request that the Court appoint you as lead plaintiff of the class. 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 RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact RM LAW, P.C. (Richard A. Maniskas, Esquire) toll-free at (844) 291-9299 or by email at email@example.com or visit: www.maniskas.com. For more information about class action cases in general or to learn more about RM LAW, P.C. please visit our website: www.maniskas.com.
RM LAW, P.C. is a national shareholder litigation firm. RM LAW, P.C. is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
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SOURCE RM LAW, P.C.