Celadon Group Investor Update: Hagens Berman Alerts Investors in Celadon Group, Inc. to Non-Reliance on Previously Issued Financial Statements and Reminds Them of the Lead Plaintiff Deadline in Pending Securities Class Action

SAN FRANCISCO, May 04, 2017 -- Hagens Berman Sobol Shapiro LLP alerts investors in Celadon Group, Inc. (NYSE:CGI) to the Company’s recent disclosure that certain previously issued financial statements should no longer be relied on and reminds them that the Lead Plaintiff deadline in the pending securities class action is June 19, 2017.

If you purchased or otherwise acquired securities of CGI between December 30, 2016 and April 18, 2017 and suffered losses contact Hagens Berman Sobol Shapiro LLP.  For more information visit:

https://www.hbsslaw.com/cases/CGI

or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing [email protected].

On April 5, 2017, SeekingAlpha published a Prescience Point Research Group report entitled “Celadon Group: A Story That Ends At Chapter 11.”  The report traced CGI’s accounting for joint venture transactions that Prescience Point claimed were intended to misrepresent CGI’s financial condition.  In response, the price of CGI’s shares fell approximately 13.6% to close at $5.40 on April 5, 2017.

On April 19, 2017, Prescience Point reported that the SEC is investigating the Company.  Prescience Point reached its conclusion because in response to Prescience Point’s Freedom of Information Act request, the SEC indicated that providing information “could reasonably be expected to interfere with enforcement activities.”  With this news, the price of CGI’s shares fell approximately 13%.

On May 1, 2017, CGI disclosed its outside auditor withdrew its reports on the Company’s June 30, 2016, September 30, 2016, and December 31, 2016 financial statements and that CGI’s audit committee determined these financial statements should no longer be relied on.

The auditor advised CGI that there was insufficient audit evidence about the accounting (and related structure, substance, and disclosure) for transactions involving dispositions and acquisitions of revenue equipment between June and December of 2016 and the related carrying values.  In response, the price of CGI’s shares has fallen over 64% during intraday trading on May 2, 2017.

“Among other things, we’re focused on the magnitude of likely financial restatements,” said Hagens Berman partner Reed Kathrein.

Whistleblowers: Persons with non-public information regarding CGI should consider their options to help in the investigation or take advantage of the SEC Whistleblower program.  Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.  For more information, call Reed Kathrein at 510-725-3000 or email [email protected].

About Hagens Berman
Hagens Berman is a national investor-rights law firm headquartered in Seattle, Washington with offices in 10 cities.  The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the Firm and its successes can be found at www.hbsslaw.com.  For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.

Contact:
Reed Kathrein, 510-725-3000