Rigrodsky & Long, P.A. announces it has filed a class action lawsuit on behalf of former and current employees of YRC Worldwide, Inc. (the “Company” or “YRC”) (Nasdaq: YRCW) who invested in the YRC Regional Transportation, Inc. 401(k) Retirement Plan, the New Penn Motor Express, Inc. 401(K) Retirement Plan, and the Yellow Roadway Corporation Retirement Savings Plan (collectively, the “Plans”).
The lawsuit, pending in the United States District Court for the District of Kansas, alleges that from March 23, 2006 through the present (the “Class Period”), the Plans’ administrators breached their fiduciary duties to the Plans and Participants in violation of the Employee Retirement Income Security Act of 1974 (“ERISA”), by failing to prudently and loyally manage the Plans’ investment in Company stock by, among other things: (i) continuing to offer Company stock as a retirement saving option; (ii) continuing to acquire and hold shares of Company stock in the Plans when it was imprudent to do so; (iii) failing to provide complete and accurate information to Participants regarding the Company’s financial condition and the prudence of investing in Company stock; and (iv) maintaining the Plans’ pre-existing investment in Company Stock when it was no longer a prudent investment for the Plans. The lawsuit further alleges that the investment in YRC common stock was imprudent, inter alia, because: (i) some of YRC’s larger customers had been moving to more consolidated models that in many cases allowed them to use their internal fleets and reduce volumes with external carriers; (ii) the customer anxiety surrounding the integration of Yellow Transportation and Roadway caused a significant loss of business and the fact that; (iii) competitive pricing was eroding the Company’s bottom line; and (iv) the Company’s management expected a material loss during the second half of 2008. Therefore, defendants knew or should have known that the Company’s management expected the weak performance to continue into the foreseeable future, and they negligently allowed the imprudent investment of the Plans’ assets in YRC stock to continue.