Roadrunner Transportation was near death’s door in 2017. After going public in 2010, in five years Roadrunner had made more than 20 acquisitions. However, those mostly truckload acquisitions affected the company’s service and reputation in its traditional less-than-truckload market. The company was bleeding money, losing millions of dollars — but hiding those losses from shareholders, regulators, and customers by manipulating its financial reports.
It all came crashing down in 2017, when Roadrunner announced that it would restate its previously reported financial results due to accounting irregularities. Shareholders lost millions when the stock price plummeted. Former Chief Financial Officer Peter Armbruster would eventually be sentenced to prison for securities fraud and ordered to pay $1.14 million in restitution. The company itself ended up settling with the Securities and Exchange Commission earlier this year.