WASHINGTON--(BUSINESS WIRE)--
Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Celadon Group Inc. (“CGI” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the Southern District of New York by another law firm on behalf of purchasers of the common stock of Celadon Group Inc. (NYSE: CGI) between December 30, 2016 and April 18, 2017, inclusive (the “Class Period”).
The complaint alleges that CGI and certain of its officers and directors (“Defendants”) misrepresented and/or failed to disclose that: (1) CGI’s equity contribution to its joint venture with Element Financial Corp. (“Element”) was $68.2 million, rather than the $100 million contribution the Company reported in its public filings; (2) the Company is being actively investigated by the U.S. Securities and Exchange Commission; and (3) that as a result of the foregoing, CGI’s publicly disseminated financial statements were materially false and misleading.
The claims in this case followed allegations by Prescience Point Research Group. On April 5, 2017, Prescience published a research report setting a price target of $0.00 per share for CGI. The report argued the Company engaged in accounting manipulations using, among other things, sham transactions and off-balance sheet transactions to hide losses and inflate profits. In particular, the report took issue with the Element joint venture, arguing that CGI misrepresented the true value of its contribution to the joint venture, that $38.1 million collected by CGI from Element was a sham loan, and that the joint venture was designed to conceal CGI’s losses. The price of CGI fell from $6.25 on April 4, 2017 to $5.40 on April 5, 2017.
On April 19, 2017, Prescience published a second research report announcing CGI was the subject of an active SEC investigation. Prescience’s April 19 report also reasserted its prior claims that CGI significantly overstated profits and alleged CGI was in imminent danger of bankruptcy and collapse. The price of CGI fell from $4.40 on April 18, 2017 to $4.20 on April 19, 2017.
Cohen Milstein encourages all investors who purchased Celadon Group common stock between December 30, 2016 and April 18, 2017, or former employees with information concerning this matter to contact the firm.
If you are a Celadon Group shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at [email protected]. If you wish to serve as lead plaintiff, you must move the Court no later than June 19, 2017 to request appointment. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.
Cohen Milstein has significant experience in prosecuting investor class actions and actions involving securities fraud, and is active in major litigation pending in federal and state courts throughout the nation. Cohen Milstein has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total billions of dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Robin Bleiweis
Cohen Milstein Sellers &
Toll PLLC
1100 New York Avenue, N.W.
Fifth Floor
Washington,
D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: [email protected];
[email protected]
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