2. Who should be responsible for the Roadrunner's accounting scandal? What factors contribute or misallocating expenses...

 

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2. Who should be responsible for the Roadrunner's accounting scandal? What factors contribute or misallocating expenses and creating an income cushion for the company to access in the future as well as overstating receivables and not writing off millions of dollars in overvalued fraud, and keeping false books and records. The US. Securities and Exchange Commission had violating federal securities laws, including misleading a public company's auditors, securities charged Armbruster and two former controllers of Roadrunner's truckload division with hiding assets. (The former controllers were found not guilty of all charges against them.) After the scheme was discovered and investigated, Roadrunner was forced to restate its tesu for the third quarter of 2016, After combing through its books, the company's new executive team (which took over in the spring of 2017) eventually had to book S374 million in impairment charges across three business units for 2016. Then headquartered in Wisconsin and now based in Illinois, Roadrunner's leaders have since late 2019 sold off seven divisions to a number of buyers and today service only the less-than- truckload market. The company has about 1,000 drivers in its fleet, and the market capitalization of its thinly traded shares now listed on the Pink Sheets (Ticker: RRTS) is abour $80 million, down from about $450 million five years ago. The company carly this year rased $50 million via a private placement to pursue its LTL growth plans. "This sentence reflects the serious harm an executive caused by deliberately minleading shareholders, auditors, and the general public about the financial health of a publicly trted Company, Assistant Attorney General Kenneth Polite Jr. of the U.S. Department of Justice Chimmar Division, said in a statement."People deserve better from corporate management. r Ring m groups of 3-4 and discuss the following questions. (Some of you will be asked to give your answers to the class). 1. what are accounting problems that Roadrunner had? What is the impact on its ihancian report? What is the impact on the stock market? • 2om the m t toe to the company's failure? Think and discuss in a brondder view (e.g. business environment, legal regulation and so on). 3. What do we need to do to eliminate the reoccurrence of such event? List all the possible improvements you can think of. 2. Who should be responsible for the Roadrunner's accounting scandal? What factors contribute or misallocating expenses and creating an income cushion for the company to access in the future as well as overstating receivables and not writing off millions of dollars in overvalued fraud, and keeping false books and records. The US. Securities and Exchange Commission had violating federal securities laws, including misleading a public company's auditors, securities charged Armbruster and two former controllers of Roadrunner's truckload division with hiding assets. (The former controllers were found not guilty of all charges against them.) After the scheme was discovered and investigated, Roadrunner was forced to restate its tesu for the third quarter of 2016, After combing through its books, the company's new executive team (which took over in the spring of 2017) eventually had to book S374 million in impairment charges across three business units for 2016. Then headquartered in Wisconsin and now based in Illinois, Roadrunner's leaders have since late 2019 sold off seven divisions to a number of buyers and today service only the less-than- truckload market. The company has about 1,000 drivers in its fleet, and the market capitalization of its thinly traded shares now listed on the Pink Sheets (Ticker: RRTS) is abour $80 million, down from about $450 million five years ago. The company carly this year rased $50 million via a private placement to pursue its LTL growth plans. "This sentence reflects the serious harm an executive caused by deliberately minleading shareholders, auditors, and the general public about the financial health of a publicly trted Company, Assistant Attorney General Kenneth Polite Jr. of the U.S. Department of Justice Chimmar Division, said in a statement."People deserve better from corporate management. r Ring m groups of 3-4 and discuss the following questions. (Some of you will be asked to give your answers to the class). 1. what are accounting problems that Roadrunner had? What is the impact on its ihancian report? What is the impact on the stock market? • 2om the m t toe to the company's failure? Think and discuss in a brondder view (e.g. business environment, legal regulation and so on). 3. What do we need to do to eliminate the reoccurrence of such event? List all the possible improvements you can think of.

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