Roadrunner investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Roadrunner is purportedly a leading asset-light transportation and logistics service provider offering a full suite of solutions, including truckload logistics, customized and expedited less-than-truckload, transportation management solutions, intermodal solutions (transporting a shipment by more than one mode, primarily via rail and truck), freight consolidation, inventory management, on-demand expedited services, international freight forwarding, customs brokerage, and comprehensive global supply chain solutions.
The complaint alleges that throughout the Class Period the defendants issued materially false and misleading statements to investors and/or failed to disclose that: (1) the avian flu epidemic would have an adverse impact on Roadrunner Transportation Systems’ financial condition; and (2) as a result, defendants’ statements about Roadrunner Transportation Systems’ business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
According to the complaint, on December 19, 2014, the first case of avian influenza subtype H5N2 in the United States was identified in a mixed poultry flock in Douglas County, Oregon. Subsequently, an outbreak of avian influenza subtype H5N2 was identified in a series of chicken and turkey farming operations in the Midwestern region of the United States. On June 1, 2015, The Des Moines Register reported that nearly 45 million birds in 15 states have been destroyed due to the avian flu outbreak.
The Class Period commences when the company issued a press release, after the market closed on July 29, 2015, entitled “[Roadrunner] Reports Second Quarter 2015 Results and Announces Third Quarter 2015 Guidance.”
The complaint alleges that on August 7, 2015, Defendant Scott D. Rued, the company’s Chairman of the Board, sold 2,000,000 Roadrunner shares through various investment entities at $24.34 per share for proceeds of over $48,000,000. Then, on October 26, 2015, the company issued a press release during after-hours trading entitled “Roadrunner Transportation Systems Announces Revised Guidance for Third Quarter 2015 and Guidance for Fourth Quarter 2015.” The press release contained a lower guidance for the third quarter of 2015 and stated “Our [truckload logistics] segment is heavily weighted toward refrigerated food items, which were impacted by lower than expected poultry, beef and produce freight due to the recent Midwest and West Coast droughts and the bird flu epidemic.”
Following this news, the company’s shares fell $8.33 per share or over 47% from its previous closing price to close at $9.34 per share on October 27, 2015.
If you are a member of the class described above, you may no later than January 12, 2016, move the Court to serve as lead plaintiff of the class, if you so choose.
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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706