MIAMI (Legal Newsline) – A Florida public pension has hired private lawyers to sue a company it once held stock in.
The Key West Police & Fire Pension Fund filed a proposed shareholder class action lawsuit against Ryder System on May 20 in Florida federal court. It seeks to certify a class of those who bought shares of the company between July 2015 and February 2020.
Ryder is a provider of transportation and supply chain management solutions headquartered in Miami. It is alleged to have overstated the residual value of its trucking fleet in order to record smaller depreciation expenses each year.
“While Ryder kept increasing the expected residual value of its trucking fleet, the actual amount Ryder was receiving from sales of its used trucks had started to decrease beginning in 2015,” the lawsuit says.
Ryder’s 2019 earnings forecast was drastically reduced in July, leading to a stock drop from $59.32 per share to $53.38.
Months later, the company lowered the residual values for all its vehicles and suffered a drop to $48.44, the lawsuit says.
Finally, the company announced in February a $58 million loss on the sale of used vehicles, and the share price lowered to $40.12.
Key West has hired Klausner Kaufman in Plantation and Bernstein Litowitz in New York.
U.S. District Court for the Southern District of Florida case number 1:20-cv-22109