NEW YORK, May 18, 2016 /PRNewswire/ -- Pomerantz LLP
is investigating claims on behalf of investors of Gerdau S. A.
("Gerdau" or the "Company") (NYSE: GGB). Such investors are
advised to contact Robert S.
Willoughby at rswilloughby@pomlaw.com or 888-476-6529, ext.
9980.
[Click here to join a class action]
The investigation concerns whether Gerdau and certain of its
officers and/or directors have violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934.
On or around March 26, 2015, news
reports revealed that the Company was the subject of a raid by
Brazilian Federal Police in connection with
"Operation Zelotes," an investigation into alleged tax fraud
by a variety of Brazilian companies. According to news
reports, Gerdau allegedly defrauded tax authorities of over
$380 million, including by engaging
in a bribery scheme with tax authorities. On this news the
Company's American Depository Receipts ("ADRs") fell $0.38 per share, or over 11%, to close on
March 27, 2015 at $3.06 per share on unusually heavy volume.
On or around February 23 through February
26, 2016, Gerdau's offices were the subject of further raids
by Brazilian authorities in connection with Operation
Zelotes. According to Brazilian authorities Gerdau was
targeted in a new phase of an investigation involving bribes to the
Board of Tax Appeals, and police carried out "20 court orders for
testimonies and 18 search warrants in Rio Grande do Sul,
Rio de Janeiro, Sao Paulo, Pernambuco and Brasilia." On February
25, 2016, Gerdau confirmed that Brazilian police had raided
Company offices in connection with Operation Zelotes. On this
news the Company's ADRs fell $0.19,
or nearly 18%, over four trading days, to close at $0.87 per share on February 26, 2016. On May 16, 2016, various news outlets reported that
Brazil's federal police accused
Gerdau of evading $429 million in
taxes and indicted Gerdau executives, including Chief Executive
Officer André Gerdau Johannpeter, on corruption-related charges.
The charges included bribery, money laundering, and influence
peddling.
On this news, Gerdau's ADRs fell $0.13, or over 7%, to close at $1.72 per share on May 16,
2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los
Angeles, is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation.
Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the
Pomerantz Firm pioneered the field of securities class actions.
Today, more than 80 years later, the Pomerantz Firm continues in
the tradition he established, fighting for the rights of the
victims of securities fraud, breaches of fiduciary duty, and
corporate misconduct. The Firm has recovered numerous
multimillion-dollar damages awards on behalf of class members. See
www.pomerantzlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
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SOURCE Pomerantz LLP