Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Roadrunner Transportation Systems (NYSE: RRTS) in connection to alleged violations of securities laws by RRTS and certain of its officers. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Roadrunner Transportation Systems between May 8, 2014 and January 30, 2017.
The lawsuit specifically alleges that during the period in question, Roadrunner Transport made false and/or misleading statements and/or failed to disclose adverse material information regarding the company’s business, operation and prospects, for instance: that the company did not have adequate controls over financial reporting; that the company made overestimated the results of its operations as early as the beginning of 2014; that the company’s financial statements included errors stemming from expenses that were not recorded on unreconciled balance sheets; and that the company’s financial statements as early as the beginning of 2014 were unreliable. The lawsuit alleges that when true details ultimately emerged, investors suffered losses.
In January 2016 Roadrunner Transport announced that it was “made aware of various potential accounting discrepancies at its Morgan Southern and Bruenger operating subsidiaries” in November 2016 and subsequently launched an investigation into such. The investigation remains in progress. Roadrunner Transport has informed its investors that it estimates its financial reporting for the years 2014-2016 “will require prior period adjustments to Roadrunner’s results of operations of between $20 million and $25 million.” The company also informed its investors that its errors “principally relate to unrecorded expenses from unreconciled balance sheet accounts including cash, driver and other receivables, and linehaul and other driver payables.” Following this announcement, RRTS’s share price descended $3.62, or 31.37%.
According to the company’s website, Roadrunner Transport is “a leading asset-light transportation and supply chain solutions provider offering a full suite of services, including less-than-truckload, truckload, temperature-controlled, intermodal, expedited, and domestic and international air.” The description continues: “Our independent contractors and third-party transportation providers provide us with the freight capacity our customers need. Across all transportation modes, from pickup to delivery, we leverage relationships with a diverse group of carriers to provide scalable capacity and reliable, flexible service to our more than 35,000 customers. Although we service large national accounts, we primarily focus on small to mid-size shippers, which we believe represent an expansive and underserved market.”
A class action lawsuit has already been filed in connection with Roadrunner Transportation Systems. If you wish to serve as lead plaintiff in the RRTS lawsuit, you must move the Court no later than April 3, 2017. If you wish to join the litigation, please contract Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.