Ryder System, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of Florida on behalf of those who acquired Ryder System, Inc. (“Ryder” or the “Company”) (NYSE: R) securities during the period from July 23, 2015 through February 13, 2020. Investors have until July 20, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company inflated Ryder’s financial results by systematically overstating the residual value of its trucking fleet. While Ryder repeatedly increased the expected residual values of its trucks, the actual amount Ryder was receiving from sales of used trucks had started to decline beginning in 2015.
On July 30, 2019, Ryder reduced its full-year 2019 earnings forecast in large part due to Ryder’s weaker valuations of its tractors. On this news, Ryder shares fell %5.94, or 10.0%, to close at $53.38 per share on July 30, 2019.
On October 29, 2019, the Company revealed that “our residual value estimates likely exceeded the expected future values that would be realized upon the sale of power vehicles in our fleet” and significantly lowered the residual values for all its vehicles, incurring $177 million in additional depreciation expense in the third quarter of 2019. On this news, Ryder shares fell $6.68 over two trading days, or 12.1%, to close at $48.44 on October 30, 2019.
Finally, on February 13, 2020, the Company reported that it had incurred a total of $357 million in depreciation expense for 2019 plus a loss of approximately $58 million on the sale of used vehicles. The Company also announced that, for 2020, it expected to incur another $275 million in depreciation expense on its fleet due to the reductions in residual value plus an additional $20 million estimated loss on used vehicle sales. On this news, Ryder shares fell $10.07 over two trading days, or 20.0%, to close at $40.12 per share on February 14, 2020.
If you acquired Ryder securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.