Celadon Group, Inc. (NYSE:CGI)
Celadon Group, Inc. (NYSE:CGI) is at risk of a possible delisting from the New York Stock exchange having failed to meet specific listing standards. Talk of a possible delisting comes after independent auditor BKD LLP stated that the company’s financial reports cannot be relied upon.
The independent auditor’s decision to withdrawal six quarters worth of earnings reports has raised concerns of a possible delinquency filling by the NYSE. There are also concerns that Celadon might have used manipulative accounting practices to hide its insolvent condition from investors.
However, Celadon Group, Inc. (NYSE:CGI) has been offered an opportunity by the NYSE to clear its name by issuing a more accurate earnings report.
“The Company believes that it will continue to be listed on the NYSE, but there can be no assurance that the Company will be able to file the new reports within the initial cure period or any extended cure period. In addition, the NYSE maintains the ability to commence delisting procedures at any time during the cure period, but as of today, the Company does not believe the NYSE will do so,” the company in a statement.
Class Action Lawsuit
Concerns over the Celadon Group, Inc. (NYSE:CGI) financial report has initiated a number of class action lawsuits. The law offices of Vincent Wong allege that the company provided misleading statements between September 13, 2016, and May 1, 2017. One of the misleading statements is in relation to the company’s equity contribution of $68.2 million in its joint venture with Element Financial Corp.
Securities lawyers also alleging that Celadon Group, Inc. (NYSE:CGI), in its financial report for the year ended June 30, 2018, and the quarter ended September 30, 2016, cannot be relied upon. Other law firms also filing class action lawsuits include Brower Piven, Levi Korsinsky LLP, and Bronstein, Gerwirtz & Grossman, LLC.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.