Robbins LLP: Celadon Group, Inc. (CGI) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Celadon Group, Inc. (NYSE: CGI) in the U.S. District Court for the District of New Jersey. The complaint is brought on behalf of all purchasers of Celadon securities between September 13, 2016 and May 1, 2017, for alleged violations of the Securities Exchange Act of 1934 by Celadon’s officers and directors. Celadon, through its subsidiaries, provides transportation services between the United States, Canada, and Mexico.
Celadon Accused of Overstating Its Investment in Joint Venture
According to the complaint, in Celadon’s filings with the U.S. Securities and Exchange Commission (“SEC”), Celadon officials attested to the accuracy of the company’s financial statements, the disclosure of any material changes to the company’s internal control over financial reporting, and the disclosure of all fraud. On December 30, 2016, Celadon officials also touted the company’s joint venture with Element Fleet Management (“Element”), stating that it believed “the transaction has multiple benefits for our stockholders.” The complaint alleges that Celadon failed to disclose that its equity contribution to its joint venture with Element was $68.2 million, rather than the $100 million contribution the company reported in its public filings, and that Celadon was being actively investigated by the SEC. On May 1, 2017, Celadon revealed in its Form 8-K that its financial statements for the fiscal year ended June 30, 2016, and quarters ended September 30 and December 31, 2016, should no longer be relied upon. On this news, Celadon’s stock fell by 55% to close at $1.80 per share on May 2, 2017.
Celadon Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.