The shareholder class action complaint alleges that Roadrunner and certain of its executive officers made a series of materially false and misleading statements and/or failed to disclose material adverse facts about the Company's business, operations, and prospects to investors during the Class Period. Specifically, the defendants are alleged to have made false and misleading statements and/or failed to disclose that: (1) the Company lacked effective internal controls over financial reporting; (2) the Company's financial statements dating back to the beginning of 2014 overstated the estimated results of operations; (3) the Company's financial statements contained errors relating to unrecorded expenses from unreconciled balance sheet accounts including cash, driver and other receivables, and linehaul and other driver payables; and (4) the Company's financial statements dating back to the beginning of 2014 were not reliable.
On January 30, 2017, Roadrunner disclosed that, as a result of "information obtained to date in connection with an ongoing investigation" into the Company's accounting, certain of Roadrunner's previously issued financial statements should no longer be relied upon due to misstatements. Additionally, the Company reported that "Roadrunner has identified various accounting errors that it currently estimates will require prior period adjustments to Roadrunner's results of operations of between $20 million and $25 million." Further, Roadrunner reported that it would need to record a goodwill impairment charge, estimated "in the range of $175 million to $200 million," in its upcoming quarterly financial report.
On this news, shares of the Company's stock fell $3.62 per share, or over 31%, to close on January 31, 2017 at $7.92 per share, on unusually heavy trading volume.
If you purchased shares of Roadrunner since May 8, 2014, and suffered losses in excess of $100,000 on your investment and would like to learn more about this lawsuit and your ability to potentially recover your losses, please contact us either by email at email@example.com or by telephone at 1-800-511-7037 or contact us via our website.
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