FreightRover—which began as part of the Indianapolis trucking company Celadon Group—sells software that helps clients optimize freight flow and streamline carrier payments for shippers, carriers and drivers.
The settlement, which is awaiting court approval, would resolve suits brought by several parties over financial-reporting issues that have plagued Celadon for at least four years. The plaintiffs expressed concern that the company would go bankrupt before any recovery could be made.
The Indianapolis-based trucking company said the probe by the Criminal Division of the United States Department of Justice is related to financial reporting issues that it first disclosed in May 2017.
About 2,400 independent drivers for Indianapolis-based Celadon Trucking Services Inc. are seeing the results of a class-action judgment that found the drivers were overcharged for their fuel purchases.
The struggling Indianapolis-based company said it has arranged a much-needed loan but must give up a major ownership stake and board seats to receive it.
An internal probe found Celadon overstated earnings by as much as $250 million from 2013 to 2016. The local trucking company said it will be delisted from the New York Stock Exchange.
The extension gives Celadon until May 2 to file several delinquent quarterly and annual financial reports with the Securities and Exchange Commission.
The trucking giant is canceling its $28 million Mount Comfort headquarters, selling its flatbed unit, and outsourcing its driver schools, to refocus on core business as the industry is expected to boom.
The move comes as the Indianapolis-based trucking company works through financial, accounting and operational issues.
Indianapolis-based Celadon Group Inc. is exiting the driver-education business, five years after spending heavily to launch the driving schools as a way to combat an ongoing shortage of qualified truck drivers.
Investors and analysts are reacting positively to Celadon Group Inc.’s decision to bring in an outside executive with years of transportation industry experience to run the company.
Several local not-for-profit and community groups are caught in a family dispute over the $31 million estate of Stephen Russell, the Celadon Group Inc. co-founder who died last year at age 76.
Eric Meek, who resigned as Celadon’s president and chief operating officer last month, is involved with plans to purchase Celadon subsidiary Prosair Technologies.
The trucking company's financial statements became decidedly more opaque after October 2015, when it set up an off-balance-sheet truck-leasing joint venture in which management held ownership.
The delinquency occurred when Celadon’s auditor, BKD LLP, withdrew its reports on the trucking company’s financial statements for the periods ending June 30, Sept. 30 and Dec. 31 of 2016.
The troubled Indianapolis-based trucking company conducted a conference call Wednesday to answer questions about its latest accounting issues, but the call lasted 18 minutes and investors didn’t get to talk.
Shares in the Indianapolis-based trucking company dropped as much as 67 percent Tuesday morning. At least 16 law firms say they have filed lawsuits against the company or are investigating doing so.