Shuman, Glenn & Stecker Investigates Ryder System, Inc.

Rhea-AI Summary

The law firm Shuman, Glenn & Stecker is investigating potential shareholder claims against Ryder System, Inc. (NYSE: R). This follows a class action lawsuit filed on May 20, 2020, alleging that Ryder's senior officers inflated truck residual values to manipulate financial statements and mislead investors. Significant reductions to residual values led to a $357 million depreciation expense for 2019, resulting in a stock price drop of 23% after the announcement. Investors with claims or information are encouraged to contact Brett Stecker.

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• None.

Negative

• Class action lawsuit alleging inflation of truck residual values.
• $357 million depreciation expense incurred for 2019 due to reduced residual values.
• Stock prices fell 23% after financial disclosures regarding depreciation and losses on used vehicle sales.

DENVER--(BUSINESS WIRE)--Shuman, Glenn & Stecker announces it is investigating potential shareholder claims against certain officers and directors of Ryder System, Inc. (“Ryder” or the “Company”) (NYSE: R). Ryder is a global provider of transportation solutions.

The Firm’s investigation concerns allegations raised in a securities class action lawsuit filed against Ryder and certain of its senior officers on May 20, 2020 in the U.S. District Court for the Southern District of Florida. The lawsuit relates to Ryder’s truck-leasing model, in which Ryder assigns “residual values” to trucks for depreciation purposes and then sells those vehicles at the end of their useful lives. This lawsuit alleges that for years, the defendants artificially inflated these residual values in order to understate depreciation expense, overstate profits, increase incentive compensation, and make insider stock sales. It is further alleged that the defendants made misleading public statements concerning Ryder’s financial performance and the value of its core assets.

On July 30, 2019, Ryder reduced its 2019 earnings forecast due to weaker valuations of its tractors. On this news, Ryder’s stock price fell 10%, from $59.32 per share to $53.38 per share. On October 29, 2019, Ryder reduced its residual value estimates by $844 million. On this news, Ryder’s stock price fell over 12%, from $55.12 per share to $48.44 per share. As J.P. Morgan reported, Ryder’s “big bath” on residual values “confirms Ryder was over-earning by a significant amount in prior years...”

On February 13, 2020, Ryder reported that due to significant reductions to its fleet’s residual value, it incurred $357 million in depreciation expense for 2019, plus a loss of $59 million on used vehicle sales. Ryder also announced that for 2020 it expected to incur another $25 million in depreciation expense on its fleet, plus a $20 million estimated loss on used vehicle sales. Ryder’s stock price fell 23%, from $50.19 per share to $38.45 per share following this disclosure.

If you currently own Ryder common stock and are interested in discussing your rights, or have information relating to this investigation, please contact Brett Stecker toll free at (866) 569-4531 or email Mr. Stecker at brett@shumanlawfirm.com.

Shuman, Glenn & Stecker represents investors throughout the nation, concentrating its practice in stockholder litigation.