PHILADELPHIA, May 28, 2020 /PRNewswire/ -- Berger Montague is investigating securities fraud claims against Ryder System, Inc. ("Ryder" or the "Company") on behalf of all purchasers of Ryder common stock (NYSE: R) between July 23, 2015 and February 13, 2020 (the "Class Period").
If you purchased Ryder shares, have information, would like to discuss this investigation, or have any questions concerning your rights or interests, please contact our attorneys Benjamin Galdston, Esq. at (619) 678-0187 or Andrew Abramowitz, Esq. at (215) 875-3015, or visit www.bergermontague.com/ryder-system.
According to a lawsuit filed in the United States District Court for the Southern District of Florida, Ryder misled investors by assigning significantly overstated residual values to its trucking fleet, thereby allowing the Company to report depreciation expenses that were lower than they should have been, thus artificially inflating Ryder's earnings.
Investors began to learn the truth about these overstated residual values through a series of disclosures beginning on July 30, 2019. On that date, Ryder drastically reduced its earnings forecast for 2019, and attributed this lowered guidance primarily to weaker valuations of the Company's tractors. On this news, the price of Ryder shares declined 10%, or $5.94 per share, to close at $53.38 per share.
Then, on October 29, 2019, the Company substantially lowered the residual values for all its vehicles and recorded a $177 million depreciation expense. Ryder explained that "management concluded that our residual value estimates likely exceed the expected future values that would be realized upon the sale of power vehicles in our fleet." Shares dropped 12% over the next two trading days, falling from $55.12 per share to $48.44 per share by the close of trading on October 30, 2019.
Finally, on February 13, 2020, Ryder disclosed that it recorded a total depreciation expense of $357 million for fiscal year 2019, and that it expected to record an additional depreciation expense of $275 million during fiscal year 2020 due to additional reductions of residual values. In response to this news, the price of Ryder shares declined 20%, or $10.07 per share, over the next two trading days, to close at $40.12 on February 14, 2020.
If you purchased Ryder common stock during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is July 20, 2020. You do not need to be a lead plaintiff to share in any potential Class recovery.
Whistleblowers: Persons with non-public information regarding Ryder System, Inc. should consider their options to help Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of successful recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for five decades and serves as lead counsel in courts throughout the United States.
Benjamin Galdston, Shareholder
Andrew Abramowitz, Senior Counsel
SOURCE Berger Montague