RM LAW, P.C. announces that a class action lawsuit has been filed in United States District Court for the Southern District of New York on behalf of all persons or entities that purchased Celadon Group, Inc. (“Celadon” or the “Company”) (NYSE: CGI) securities between December 30, 2016 and April 18, 2017, inclusive (the “Class Period”).
Celadon shareholders may, no later than June 19, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Celadon and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, visit: www.maniskas.com/case/cgi.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Celadon’s equity contribution to its joint venture with Element Financial Corp. was $68.2 million and not $100 million as the Company reported in its public filings; (2) Celadon was being investigated by the Securities and Exchange Commission (“SEC”); and (3) consequently, Celadon’s financial statements were materially false and misleading.
On April 5, 2017, Prescience Point Research Group (“Prescience”) published a report alleging, that Celadon “used off-balance sheet entities . . . and manipulative accounting practices to hide its insolvent condition from investors and creditors.” Following this news, Celadon stock dropped $0.85 per share or 13.6% to a close at $5.40 on April 5, 2017.
Then on April 19, 2017, Prescience reported that Celadon received a letter from the SEC notifying that the Company was under investigation. Following this news, Celadon stock dropped from $4.40 per share on April 18, 2017 to an intraday low of $3.85 on April 19, 2017 —a $0.55 or a 12.5% drop.
If you are a member of the class, you may, no later than June 19, 2017, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.