Celadon shares plummet after company admits to accounting woes

Shares in Celadon Inc. plummeted as much as 67 percent Tuesday morning—near an all-time low—after the Indianapolis-based trucking company reshuffled its executive leadership team in the wake of major financial reporting problems.

As IBJ reported earlier Tuesday, Celadon has overhauled its leadership team as it works through a raft of financial challenges that include a projected $10 million quarterly loss, increased lender scrutiny over its operations and a loss of confidence by its auditor in the company’s recent financial reports.

Celadon shares briefly fell to $1.30 in late-morning trading before rebounding slightly, to about $1.65. The stock’s all-time low closing price was $1.31 per share, reached in March 2001.

Shares closed as high as $9.15 two months ago.

At least 16 law firms, most of them based in New York City, have issued press releases in recent days saying they have filed lawsuits against the company or are investigating doing so.

Most of the firms accuse the company of filing “false or misleading” financial statements and are seeking investors interested in participating in a class-action lawsuit.

A lawsuit filed April 19 accused Celadon of misleading shareholders about its financial status and covering up a U.S. Securities and Exchange Commission investigation into the company. Celadon has denied knowledge of an investigation.