On December 30, 2016, Celadon announced the closing of a Joint Venture agreement with Element Transportation LLC (“Element”).
The complaint alleges that on April 5, 2017 a report issued by Prescient 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 as set forth in the complaint 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 April 5, 2017, Celadon’s stock price declined by 13.6% to close at $5.40 per share.
The complaint further alleges that 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. On April 19, 2017, Celadon’s stock price declined by 4.5% to close at $4.20 per share.
The class action complaint alleges that throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose that (i) 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 SEC filings, (ii) the Company is being actively investigated by the SEC, and (iii) that as a result of the foregoing, Celadon’s publicly disseminated financial statements were materially false and misleading.
If you are a member of the proposed Class, you may move the court no later than June 19, 2017 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing email@example.com or by calling 800-290-1952.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
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SOURCE Kaplan Fox & Kilsheimer LLP