NEW YORK, April 20, 2017 /PRNewswire/ -- Kaplan
Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating
claims on behalf of investors of Celadon Group, Inc. ("Celadon" or
the "Company") (NYSE: CGI).
A class action complaint has been filed in the United States
District Court for the Southern District of New York against Celadon and certain officers
of the Company on behalf of investors who purchased or otherwise
acquired Celadon common stock between December 30, 2016 and April 18, 2017, inclusive (the "Class"), alleging
violations of the Securities Exchange Act of 1934.
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
pmayer@kaplanfox.com or by calling 800-290-1952.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: dhall@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California
94104
(415) 772-4700
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/investor-alert-kaplan-fox-announces-investigation-of-celadon-group-inc-300443142.html
SOURCE Kaplan Fox &
Kilsheimer LLP