NEW YORK, April 24, 2017 /PRNewswire-USNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Celadon Group, Inc. ("Celadon" or the "Company") (NYSE: CGI) and certain of its officers, on behalf of a class who purchased Celadon securities between December 30, 2016 and April 18, 2017 (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: www.bgandg.com/cgi.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Celadon's equity contribution to its joint venture with Element Financial Corp. was $68.2 million and not $100 million as the Company reported in its public filings; (2) Celadon was being investigated by the Securities and Exchange Commission ("SEC"); and (3) consequently, Celadon's financial statements were materially false and misleading.
On April 5, 2017, Prescience Point Research Group ("Prescience") published a report alleging, that Celadon "used off-balance sheet entities . . . and manipulative accounting practices to hide its insolvent condition from investors and creditors." Following this news, Celadon stock dropped $0.85 per share or 13.6% to a close at $5.40 on April 5, 2017.
Then on April 19, 2017, Prescience reported that Celadon received a letter from the SEC notifying that the Company was under investigation. Following this news, Celadon stock dropped from $4.40 per share on April 18, 2017 to an intraday low of $3.85 on April 19, 2017 —a $0.55 or a 12.5% drop.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: www.bgandg.com/cgi or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Celadon you have until June 19, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
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