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Oklahoma City, OK (May 21, 2020) – On May 20, 2020, a securities class action lawsuit was filed in the United States District Court for the Southern District of Florida against Ryder System, Inc. (NYSE: R). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is July 23, 2015 through February 13, 2020. More specifically, the complaint filed alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) failed to disclose that Ryder’s financial results were inflated as a result of the Company’s practice of overstating the residual values of the vehicles in its fleet; (2) there was no reasonable basis to believe that Ryder would sell its used vehicles for the amounts that it had assigned to them; (3) Ryder’s residual values for its fleet of vehicles exceeded the expected future values that would be realized upon the sale of those vehicles by such a degree that the Company ultimately took a $357 million depreciation charge in 2019 related to Ryder’s reduction of its residual values to align them with the amounts for which they could realistically be sold; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.
The truth was revealed between July 2019 and February 2020, when Ryder drastically reduced its 2019 full year earnings forecast. On February 13, 2020, Ryder reports that as a result of the significant reductions to the residual value of its fleet, it had incurred $357 million in depreciation expense for 2019 plus a loss of approximately $58 million on the sale of used vehicles. Ryder further announced that for 2020 it expected to incur another $275 million in depreciation expense on its fleet due to depreciation expense and an additional $20 million estimated loss on used vehicle sales. On this news, Ryder’s stock price declined 20% over two trading days, from $50.19 per share to $40.12 per share.
Plaintiff seeks to recover damages on behalf of all Ryder System, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, July 20, 2020 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at email@example.com