CASES
YRC Worldwide Inc.
Class Period: Apr 24, 2008 to Nov 2, 2009
Lead Plaintiff Deadline: Apr 8, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against YRC Worldwide Inc. (YRCW) ("YRC" or the "Company") on behalf of all securities purchasers from April 24, 2008 through November 2, 2009, inclusive ("Class Period") in the United States District Court of Kansas.
The complaint alleges that throughout the Class Period, defendants failed to disclose material adverse facts about YRC's true financial condition, business and prospects. Specifically, the complaint alleges that defendants' statements were materially false and misleading because they misrepresented and overstated the financial condition of the Company and had the intended effect of causing YRC shares to trade at artificially inflated levels throughout the Class Period - reaching a Class Period high of over $20 per share during August 2008.
On October 29, 2008, YRC issued a press release announcing that it had eliminated 3,750 jobs at the Company's various units, representing roughly 6% of YRC's total work force of 58,000. That same day, Reuters reported that the jobs elimination action was part of the Company's "ongoing efforts to revamp operations." Throughout the balance of the Class Period, the complaint alleges that YRC continued to deceive the investing public by making positive financial announcements about the Company until November 2, 2009, when YRC shocked investors when it revealed, for the first time, that the Company was performing well below expectations and that it now expected to convert over half a billion dollars of debt into shares of Company stock, thereby effectively giving bondholders as much as 95% of the equity of the Company and resulting in the resignation of seven of its nine directors. Shares of YRC stock plummeted on this news - falling 64% on a single trading day, or over $2.30 per share on huge volume of 54.8 million shares traded, over five times the stock's average daily volume over the past three months, to close at only $1.32 per share on November 2, 2009.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.