WASHINGTON--(BUSINESS WIRE)--Cohen Milstein Sellers & Toll PLLC is conducting an investigation to
determine whether Celadon Group Inc. (“CGI” or the “Company”) and
certain of its officers and directors made false and misleading
statements and/or omissions in violation of Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the
Southern District of New York by another law firm on behalf of
purchasers of the common stock of Celadon Group Inc. (NYSE: CGI) between
December 30, 2016 and April 18, 2017, inclusive (the “Class Period”).
The complaint alleges that CGI and certain of its officers and directors
(“Defendants”) misrepresented and/or failed to disclose that: (1) CGI’s
equity contribution to its joint venture with Element Financial Corp.
(“Element”) was $68.2 million, rather than the $100 million contribution
the Company reported in its public filings; (2) the Company is being
actively investigated by the U.S. Securities and Exchange Commission;
and (3) that as a result of the foregoing, CGI’s publicly disseminated
financial statements were materially false and misleading.
The claims in this case followed allegations by Prescience Point
Research Group. On April 5, 2017, Prescience published a research report
setting a price target of $0.00 per share for CGI. The report argued the
Company engaged in accounting manipulations using, among other things,
sham transactions and off-balance sheet transactions to hide losses and
inflate profits. In particular, the report took issue with the Element
joint venture, arguing that CGI misrepresented the true value of its
contribution to the joint venture, that $38.1 million collected by CGI
from Element was a sham loan, and that the joint venture was designed to
conceal CGI’s losses. The price of CGI fell from $6.25 on April 4, 2017
to $5.40 on April 5, 2017.
On April 19, 2017, Prescience published a second research report
announcing CGI was the subject of an active SEC investigation.
Prescience’s April 19 report also reasserted its prior claims that CGI
significantly overstated profits and alleged CGI was in imminent danger
of bankruptcy and collapse. The price of CGI fell from $4.40 on April
18, 2017 to $4.20 on April 19, 2017.
Cohen Milstein encourages all investors who purchased Celadon Group
common stock between December 30, 2016 and April 18, 2017, or former
employees with information concerning this matter to contact the firm.
If you are a Celadon Group shareholder and would like to discuss your
right to recover for your economic loss, you may, without any cost or
obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at
(888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org.
If you wish to serve as lead plaintiff, you must move the Court no later
than June 19, 2017 to request appointment. Any member of the proposed
class may retain Cohen Milstein or other attorneys to serve as your
counsel in this action, or you may do nothing and remain an absent class
Cohen Milstein has significant experience in prosecuting investor class
actions and actions involving securities fraud, and is active in major
litigation pending in federal and state courts throughout the nation.
Cohen Milstein has taken a lead role in numerous important cases on
behalf of defrauded investors, and has been responsible for a number of
outstanding recoveries which, in the aggregate, total billions of
dollars. Prior results do not guarantee a similar outcome. For more
information visit www.cohenmilstein.com.
If you have any questions about this notice or the action, or with
regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Cohen Milstein Sellers &
1100 New York Avenue, N.W.
Telephone: (888) 240-0775 or (202) 408-4600
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