SAN FRANCISCO, May 22, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges investors in Ryder System, Inc. (NYSE:R) who have suffered losses in excess of $100,000 to submit their losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
Ryder System, Inc. (R) Securities Class Action:
The Complaint alleges that throughout the Class Period, Defendants misled investors by overstating Ryder’s financial results. According to the Complaint, Defendants assigned grossly overstated residual values to Ryder’s trucking fleet, which allowed the company to record smaller-than-required depreciation expenses and, in turn, artificially inflate the company’s reported earnings.
Investors began to learn the truth through a series of partial disclosures beginning on July 30, 2019, when Ryder drastically reduced its FY 2019 earnings forecast, blaming weaker valuations of the company’s tractors.
Then, on Oct. 29, 2019, the company significantly lowered the residual values for all its vehicles and recorded a $177 million depreciation expense, explaining that “management concluded that our residual value estimates likely exceed the expected future values that would be realized upon the sale of power vehicles in our fleet.”
Finally, on Feb. 13, 2020, Defendants disclosed Ryder recorded a total depreciation expense of $357 million for FY 2019, and that it expected to record an additional depreciation expense of $275 million during FY 2020 due to additional reductions of residual values.
In response to each disclosure, the price of Ryder shares sharply fell.
“We’re focused on investors’ losses and proving Ryder intentionally deceived investors through its accounting gimmickry,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Ryder and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Ryder should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email Ryder@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895