NEW YORK, April 20, 2017 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Celadon Group, Inc. (“Celadon” or the “Company”) (NYSE:CGI) of the June 19, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Celadon common stock between December 30, 2016 and April 18, 2017 (the “Class Period”). The case, Chavez v. Celadon Group, Inc. et al, No. 1:17-cv-02828 was filed on April 19, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) Celadon’s equity contribution to its joint venture with Element Financial Corp. was $68.2 million, not the $100 million that Celadon reported in public filings; (ii) Celadon was being investigated by the Securities and Exchange Commission (“SEC”); and (iii) as a result, Celadon’s financial statements were materially false and misleading.
Specifically, On April 5, 2017, Prescience Point Research Group (“Prescience”) published a report alleging, among other things, that Celadon “used off-balance sheet entities . . . and manipulative accounting practices to hide its insolvent condition from investors and creditors.” On this news, Celadon’s share price fell from $6.25 per share on April 4, 2017 to a closing price of $5.40 on April 5, 2017 —a $0.85 or a 13.6% drop.
Additionally, on April 19, 2017, Prescience reported that it received correspondence from the SEC indicating that Celadon was under investigation. On this news, Celadon’s share price fell 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.
Request more information now by clicking here: www.faruqilaw.com/CGI. There is no cost or obligation to you.
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You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Celadon’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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