LOS ANGELES, CA / ACCESSWIRE / March 29, 2017 / Lundin Law PC , a shareholder rights firm, announces a class action lawsuit against Roadrunner Transportation Systems, Inc. ("Roadrunner" or the "Company") (RRTS) concerning possible violations of federal securities laws between May 8, 2014 and January 30, 2017 inclusive (the "Class Period"). Investors who purchased or otherwise acquired shares during the Class Period should contact the firm by the April 3, 2017 lead plaintiff motion deadline.
No class has been certified in the above action yet. Until a class is certified, you are not considered represented by an attorney. You may also choose to do nothing and be an absent class member.
The Complaint alleges that during the Class Period, Roadrunner made false and/or misleading statements and/or failed to disclose that: the Company's Morgan Southern and Bruenger subsidiaries had engaged in improper accounting practices; that Roadrunner lacked effective internal controls; that Roadrunner overstated its earnings throughout the Class Period by tens of millions of dollars; and that as a result of the above, Roadrunner's financial statements were materially false and misleading at all relevant times. On January 30, 2017, post-market, Roadrunner announced that in November 2016, the Company "was made aware of various potential accounting discrepancies at its Morgan Southern and Bruenger operating subsidiaries" and commenced an investigation with the assistance of outside counsel. While the investigation remains ongoing, Roadrunner advised investors that the Company "currently estimates it will require prior period adjustments to Roadrunner's results of operations of between $20 million and $25 million" in the Company's annual and quarterly financial reporting for the years 2014, 2015, and 2016. Roadrunner advised investors that the errors "principally relate to unrecorded expenses from unreconciled balance sheet accounts including cash, driver and other receivables, and linehaul and other driver payables," and that the Company is reassessing its internal controls over financial reporting and its compliance programs.
When this news was revealed to the public, shares of Roadrunner fell in value, causing investors harm.
Lundin Law PC was established by Brian Lundin, a securities litigator based in Los Angeles dedicated to upholding the rights of shareholders.
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SOURCE: Lundin Law PC