Shareholder rights law firm Robbins Arroyo LLP has filed a class action complaint in the U.S. District Court for the Eastern District of New York over its failure to acknowledge avian flu as a potential risk. The complaint alleges that officers and directors of Roadrunner Transportation Systems, Inc. violated the Securities Exchange Act of 1934 between July 30, 2015 and Oct. 26, 2015, by making materially false and misleading statements about Roadrunner's business prospects. Roadrunner provides asset-light transportation and logistics services.
According to the complaint, on Dec. 19, 2014, the first case of avian influenza subtype H5N2 in the U.S. was identified in a poultry flock in Oregon, and subsequently in chicken and turkey farming operations in the Midwestern regions. While the press continued to report on this epidemic, Roadrunner failed to acknowledge that the avian flu was a potential risk factor that would have an adverse impact on the company's financial condition, the complaint states. Specifically, Roadrunner failed to mention the avian flu as a risk factor in its March 2, 2014 annual report for the quarter ended Dec. 31, 2015, filed on Form 10-K with the U.S. Securities and Exchange Commission, or its Aug. 3, 2015 quarterly report for the quarter ended June 30, 2015, filed on Form 10-Q.
