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 8, 2014 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, in a series of filings with the U.S. Securities and Exchange Commission, Roadrunner officials attested to the accuracy of its financial statements, effectiveness of internal controls, and that all fraud was disclosed. However, the complaint alleges that Roadrunner officials failed to disclose that: (1) the company lacked effective internal control over financial reporting; (2) the company’s financial statements dating back to the beginning of 2014 overstated the estimated results of operations; (3) the company’s financial statements contained errors related to unrecorded expenses from unreconciled balance sheet accounts including cash, driver, and other receivables; and (4) the company’s financial statements dating back to the beginning of 2014 were not reliable.
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 $7.74 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 Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.