Robbins LLP: Roadrunner Transportation Systems, Inc. (RRTS) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Roadrunner Transportation Systems, Inc. (NYSE: RRTS) in the U.S. District Court for the Eastern District of Wisconsin, Milwaukee Division. The complaint is brought on behalf of all purchasers of Roadrunner securities between May 2, 2013 and January 30, 2017, for alleged violations of the Securities Exchange Act of 1934 by Roadrunner’s officers and directors. Roadrunner provides asset-light transportation and logistics services.
Roadrunner Accused of Issuing Unreliable Financial Statements
According to the complaint, Roadrunner issued a series of public statements, press releases, and filings with the U.S. Securities and Exchange Commission touting the company’s rapid growth and reported financial results as an indicator of a successful implementation of its acquisition strategy. The complaint alleges that Roadrunner officials improperly accounted for: the goodwill assets acquired through the company’s acquisition strategy, company expenses, and existing balance sheet accounts. As a result, Roadrunner’s financial statements were not in accordance with generally accepted accounting principles, as the company understated its reported expenses, overstated its assets, and inflated its revenue and net income.
On November 10, 2016, Roadrunner revealed that it would be unable to timely file its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016. The company attributed the delay to a mistake in the calculation of its cash flow leverage ratio for the four quarters ended September 30, 2016. Then, on January 30, 2017, Roadrunner issued a press release announcing the restatement of prior period financial statements. In addition, the company stated that, “related press releases, investor presentations, or other communications describing Roadrunner’s financial statements for these periods should no longer be relied upon.” Roadrunner specified that an investigation uncovered various accounting errors that the company currently estimates will require prior period adjustments to Roadrunner’s results of operations of between $20 million and $25 million. On this news, Roadrunner’s stock fell approximately 33% to close at $7.92 per share on January 31, 2017.
Roadrunner 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.