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 in the U.S. District Court for the Eastern District of New York. The complaint alleges that officers and directors of Roadrunner Transportation Systems, Inc. (NYSE: RRTS) violated the Securities Exchange Act of 1934 between July 30, 2015 and October 26, 2015, by making materially false and misleading statements about Roadrunner’s business prospects. Roadrunner provides asset-light transportation and logistics services.
Roadrunner Accused of Failing to Disclose Avian Flu as a Risk Factor
According to the complaint, on December 19, 2014, the first case of avian influenza subtype H5N2 in the U.S. was identified in a poultry flock in Oregon, and subsequently in chicken and turkey farming operations in the Midwestern regions. While the press continued to report on this epidemic, Roadrunner failed to acknowledge that the avian flu was a potential risk factor that would have an adverse impact on the company’s financial condition. Specifically, Roadrunner failed to mention the avian flu as a risk factor in its March 2, 2014 annual report for the quarter ended December 31, 2015, filed on Form 10-K with the U.S. Securities and Exchange Commission, or its August 3, 2015 quarterly report for the quarter ended June 30, 2015, filed on Form 10-Q.
On August 7, 2015, Roadrunner’s Chairman of the Board, Scott Rued, sold 2 million Roadrunner shares through various investment entities at $24.34 per share for proceeds of over $48 million. Then, on October 26, 2015, the company issued a press release disclosing a lower guidance for the third quarter 2015, and acknowledging for the first time that its “truckload logistics segment is heavily weighted toward refrigerated food items, which were impacted by lower than expected poultry, beef, and produce freight due to the recent Midwest and West Coast droughts and the bird flu epidemic.” On this news, Roadrunner stock fell $8.33 per share, or over 47%, to close at $9.34 per share on October 27, 2015.
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.