Kahn Swick & Foti, LLC and Former Louisiana Attorney General File Suit Against YRC Worldwide Inc.: Remind Investors With Large Financial Interests of Important 4/8/11 Deadline - YRCW

Dépèche transmise le 28 février 2011 par Business Wire

NEW ORLEANS--(BUSINESS WIRE)--Kahn Swick & Foti, LLC ("KSF") and KSF partner, Former Attorney General of Louisiana, Charles C. Foti, Jr., announce the commencement of the firm’s securities class action lawsuit against YRC Worldwide, Inc. ("YRC" or the "Company") (Nasdaq: YRCW - News). The lawsuit, the first and only filed against YRC despite other law firm press releases, was filed in the United States District Court for the District of Kansas on behalf of purchasers of YRC securities between April 24, 2008 and November 2, 2009, inclusive (the “Class Period”). Subsequent to KSF’s lawsuit, shares of YRC fell 22% today after a brief halt in trading when the Company announced significant dilution of shareholders through a “comprehensive restructuring” of its finances. The restructuring marks the second such major overhaul for YRC's shareholders in less than 15 months. In December 2009 the company arranged a debt-for-equity exchange that wiped out $470 million of debt and opened credit lines for restructuring while giving noteholders 94 percent of the company's equity.

What You May Do

If you are a YRC shareholder and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, e-mail or call KSF Managing Partner, Lewis Kahn ([email protected]), toll free, 877-515-1850, or via cell phone any time at 504-301-7900, or KSF Director of Client Relations, Neil Rothstein, Esq. ([email protected]), toll free at 877-694-9510, or via cell phone any time at 330-860-4092. If you wish to serve as a lead plaintiff in this class action by overseeing lead counsel with the goal of obtaining a fair and just resolution, you must request this position by application to the Court by April 8, 2011. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. KSF encourages both institutional and individual purchasers of YRC to contact the firm. The ultimate resolution of any securities class action is strengthened through the involvement of aggrieved shareholders and lead plaintiffs who have large financial interests. KSF also encourages anyone with information regarding YRC’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.

About the Lawsuit

YRC and certain of its Officers and Directors are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934.

The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges that defendants’ statements were materially false and misleading because they misrepresented and overstated the financial condition of the Company and had the intended effect of causing YRC shares to trade at artificially inflated levels throughout the Class Period – reaching a Class Period high of over $20 per share during August 2008.

On October 29, 2008, YRC issued a press release announcing that it had eliminated 3,750 jobs at the Company’s various units, representing roughly 6% of YRC’s total work force of 58,000. That same day, Reuters reported that the jobs elimination action was part of the Company’s “ongoing efforts to revamp operations.” Throughout the balance of the Class Period, the complaint alleges that YRC continued to deceive the investing public by making positive financial announcements about the Company until November 2, 2009, when YRC shocked investors when it revealed, for the first time, that the Company was performing well below expectations and that it now expected to convert over half a billion dollars of debt into shares of Company stock, thereby effectively giving bondholders as much as 95% of the equity of the Company and resulting in the resignation of seven of its nine directors. Shares of YRC stock plummeted on this news—falling 64% on a single trading day, or over $2.30 per share on huge volume of 54.8 million shares traded, over five times the stock’s average daily volume over the past three months, to close at only $1.32 per share on November 2, 2009.

About Kahn Swick & Foti, LLC

KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities class action and shareholder derivative litigation with offices in New York and Louisiana. KSF's lawyers have significant experience litigating complex securities class actions nationwide on behalf of both institutional and individual shareholders. Recent cases include In re Virgin Mobile USA IPO Litigation, 2:07-cv-05619-SDW-MCA (D. N.J.), Co-Lead Counsel, $19.5 Million Settlement; In re BigBand Networks, Inc Securities Litigation, 3:07-CV-05101-SBA (C.D. Cal.), Co-Lead Counsel, $11 million settlement; In re U.S. Auto Parts Networks, Inc. Securities Litigation, 2:07-cv-02030-GW-JC (C.D. Cal.),Lead Counsel, $10 million settlement. KSF is also federally court-appointed Co-Lead Counsel in THE shareholder derivative cases against AIG and Bank of America (Merrill Lynch merger) emanating from their recent multi-billion dollar economic declines.

To learn more about KSF, you may visit www.ksfcounsel.com.

Business Wire

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