NEW YORK, April 26, 2017 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces a class action has been filed in the United States District Court for the Southern District of New York against Celadon Group, Inc. ("Celadon" or the "Company") (NYSE:CGI) on behalf of investors who purchased or otherwise acquired Celadon common stock between December 30, 2016 and April 18, 2017, inclusive (the "Class Period”).
Investors who have incurred losses in shares of Celadon Group, Inc. are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com.
If you suffered a loss in Celadon Group, Inc. shares and would like to assist with the litigation process as a lead plaintiff, you may, no later than June 19, 2017, request that the Court appoint you lead plaintiff of the proposed class.
On December 30, 2016, Celadon announced the closing of a Joint Venture agreement with Element Transportation LLC ("Element").
The filed class action complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that:
- Celadon's equity contribution to its Joint Venture with Element was $68.2 million, rather than the $100 million contribution the Company reported in its Securities and Exchange Commission (“SEC”) filings;
- the Company was being actively investigated by the SEC; and
- that as a result of the foregoing, Celadon's publicly disseminated financial statements were materially false and misleading.
The complaint alleges that on April 5, 2017 a report issued by Prescience Point Research Group ("Prescience Point") accused Celadon of using "off-balance sheet entities . . . and manipulative accounting practices to hide its insolvent condition from investors and creditors." Specifically, the Prescience Point report alleges that Element owed Celadon $31.8 million and that pursuant to the Joint Venture agreement, Element gave Celadon $31.8 million, which Celadon then handed right back to Element with the Joint Venture as the intermediary.
On that trading day, Celadon's stock price declined by 13.6% to close at $5.40 per share.
On April 19, 2017, Prescience Point published another report stating that Prescience Point was denied information about Celadon sought under the Freedom of Information Act ("FOIA") due to an ongoing SEC investigation. Celadon's stock price further declined by 4.5% to close at $4.20 per share.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com.
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