According to the complaint filed February 07, 2011, YRC issued a press release announcing its financial results for the first quarter of 2008, the period ended March 31, 2008. For the quarter, the Company reported a loss of ($0.81) per share.
On July 25, 2008, YRC held a conference call with analysts and investors to discuss the Company's earnings and operations. During the conference call, defendants made numerous positive statements about the Company, its business and operations.
December 24, 2008, YRC issued a press release announcing that the Company was pursuing a "long-term solution" to improve the Company's financial position.
On November 2, 2009, 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, 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 trading that day at only $1.32 per share.
According to the Order signed by Chief Judge Kathryn H. Vratil on August 22, 2011, certain individuals were appointed lead plaintiffs and Kahn Swick & Foti, LLC and Johnson & Weaver, LLP were appointed as co-lead counsel. The plaintiffs filed an
Amended Class Action Complaint on October 21, 2011. The defendants responded by filing a motion to dismiss on December 20, 2011.
On September 25, 2012, the Court issued an Order overruling the defendants' motion to dismiss.
On May 31, 2013, the Parties entered into a Stipulation of Settlement. However, on August 19, the Court denied the plaintiffs' request for preliminary class certification and settlement approval. As a result, the parties filed a Corrected Stipulation of Settlement on August 27. The Court again denied plaintiffs' request for settlement approval on November 18th.