Cudahy-based transportation and logistics provider Roadrunner Transportation Systems Inc. has been accused of misleading shareholders in regard to the impact of avian flu on its operations.
San Diego-based law firm Robbins Arroyo LLP has filed a class action complaint in the U.S. District Court for the Eastern District of New York about the alleged “materially false and misleading statements about Roadrunner’s business prospects.”
According to the complaint, Roadrunner’s officers and directors failed to disclose the potential risk of the H5N2 virus to the business’ financial condition between July 30 and October 26.
In addition, the complaint points to chairman Scott Rued’s sale of 2 million Roadrunner shares on August 7, for proceeds of more than $48 million, and the company’s subsequent October 26 press release lowering its guidance for the third quarter because of the impact of the bird flu epidemic on refrigerated food item shipments.
