about SWIFT Transportation, and MOYES
These guys are headed for serious trouble. I am shocked that Ricci would have anything to do with individuals accused of outright fraud!!!
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BALA CYNWYD, Pa., Nov. 9 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of Arizona on behalf of all securities purchasers of Swift Transportation Co., Inc. ("Swift" or the "Company") from October 16, 2003 through October 1, 2004, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Darren J. Check, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
[email protected].
The complaint charges Swift, Gary R. Enzor, Patrick J. Farley, Jerry C. Moyes, and William F. Riley III with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the conditional safety rating given to the Company by the FMSCA was not an error, but rather a true representation of Swift's performance; (2) that making the internal changes necessary to improve the rating was fiscally prohibitive; (3) that the Company had to absorb the cost of the new Department of Transportation regulations requiring that drivers be paid for loading time and time waiting to load; (4) that as a consequence of the foregoing, the Company was losing its competitive position and revenue, however, in order to maintain the appearance of financial well-being, for the benefit of defendant Moyes' personal finances, the Company systematically under-depreciating its capital assets thereby artificially inflating its revenues; (5) that as a result of this, the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); (6) the Company lacked adequate internal controls; and (7) the Company's financial results were materially inflated at all relevant times.
On September 15, 2004, Swift announced that it had adopted a new repurchase program, under which it may acquire up to $150 million of its common stock over the next several months. Additionally, Swift also announced that it expects Q3 earnings to range between 26 cents and 31 cents per share. This news shocked the market. Shares of Swift fell $2.18 per share, or 14.9 percent, on September 15, 2004, to close at $16.09 per share. On October 1, 2004, Swift announced that the previously disclosed informal inquiry by the SEC into certain stock trades by the company and insiders, including defendant Moyes, had become a formal investigation. The investigation centers around certain stock trades made by defendant Moyes as well as selected the Company repurchases. On this news, shares of Swift tumbled an additional $.95 per share, or 5.4 percent, on October 4, 2004, to close at $16.54 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit
http://www.sbclasslaw.com/.
