NEW YORK--(BUSINESS WIRE)--
Scott+Scott, Attorneys at Law, LLP (“Scott+Scott”), a national shareholder and consumer rights litigation firm, reminds investors that June 19, 2017 is the deadline to petition the court for lead plaintiff status in the securities class action lawsuit against Celadon Group, Inc. (“Celadon” or the “Company”) (NYSE:CGI). If you purchased Celadon common stock between January 27, 2016 and May 2, 2017, you are encouraged to contact Scott+Scott for more information.
Celadon provides long-haul, full-truckload freight service.
The lawsuit alleges that Celadon made false and misleading statements about the Company’s business, operations, and prospects, including that (1) the Company’s equity contribution to its joint venture with Element Financial Corp. was $68.2 million, rather than the $100 million contribution as reported in its public filings; (2) Celadon is being actively investigated by the SEC; and (3) Celadon’s financial statements for the fiscal year ended June 30, 2016, quarter ended September 30, 2016, and quarter ended December 31, 2016 could not be relied upon.
On April 5, 2017, a report published on SeekingAlpha.com by Prescience Point Research Group claimed that Celadon overstated its second quarter 2017 tangible book value and last twelve month profits by an estimated $219 million through a series of off-balance sheet transactions and other improper accounting. Following this report, the price of Celadon’s shares fell 13.6%, to close at $5.40.
Another report was published by Prescience Point on April 19, 2017, entitled “FOIA Requests Reveal CGI as the Subject of an Active SEC Investigation.” Following this news, shares of the Company’s stock dropped an additional 4.5%, to close at $4.20.
Then, on May 1, 2017, Celadon announced that its auditor was withdrawing support for prior statements. On this news, shares of Celadon fell an additional $2.20 per share, or 55%, to close at $1.80 on May 2, 2017.
What You Can Do
If you wish to discuss this lawsuit, or have questions about this notice or your legal rights, please contact attorney Joe Pettigrew toll free at (844) 818-6982 or at [email protected]. Shareholders have until June 19, 2017 to petition the court for lead plaintiff status.
About Scott+Scott, Attorneys at Law, LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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