A Roadrunner Transportation Systems shareholder is suing the company, alleging executives deceived investors into purchasing shares at inflated prices.
Robert Goss, of Cudahy, is seeking to have a judge in the U.S. District Court for Eastern Wisconsin certify his class action lawsuit, require the company to pay compensatory damages and other costs.
The lawsuit names Cudahy-based Roadrunner, along with chief executive officer Mark DiBlasi and chief financial officer Peter Armbruster.
A company spokeswoman did not immediately respond to an email seeking comment on the lawsuit.
Roadrunner revealed Monday it had discovered accounting errors in two of its operating subsidiaries that would require $20 million to $25 million in adjustments to the company’s results. The company also said securities filings and other presentations going back to 2014, including those from its independent registered public accounting firm Deloitte & Touche LLP, should no longer be relied on.
The news sent Roadrunner’s share tumbling on the New York Stock Exchange. The company was trading at $11.54 on Monday afternoon and had fallen to $7.49 as of Wednesday around noon.
Goss’ lawsuit starts the class period on May 8, 2014, when the company filed its first quarter 2014 results.
The lawsuit alleges that the company’s filings were false and misleading from that point forward because they failed to disclose the company lacked effective internal controls, results were overstated and expenses were not recording.
DiBlasi and Armbruster “had a duty to disseminate prompt, accurate and truthful information” about the company’s financial condition, the lawsuit says, alleging they would have known about the errors because of their roles in the company’s day-to-day operations.
Goss is represented by Milwaukee-based Wagner Law Group S.C. and Washington-based Levi & Korsinsky LLP. A number of law firms have issued statements saying they are investigating the situation.
