Celadon Group slides after confirmation of SEC investigation
Shares of Celadon Group (CGI) are sliding after the company confirmed that it is under investigation by the U.S. Securities and Exchange Commission. SEC INVESTIGATION: In a press release today, the trucking company acknowledged: "The SEC has undertaken a formal investigation related to the Company. The Company has received a subpoena from the SEC and is in the process of producing documents pursuant to the subpoena. Shareholder class action and derivative lawsuits have been filed by various alleged stockholders of the Company seeking damages or other remedies related to certain accounting-related matters. Those lawsuits assert claims under federal or state law related to, among other things, the Company's previously issued financial statements." The disclosure was part of a larger announcement in which the company provided updates on several topics related to its turnaround strategy, including financial, structural and personnel updates. The company announced an amendment to its primary credit facility, a separate equipment financing to afford additional liquidity and said it has "searches underway for both senior management and independent director candidates [and expects] to add both in the relatively near term." PRICE ACTION: In afternoon trading, shares of Celadon have dropped over 12% to $5.93.