NEW YORK, June 3, 2016 /PRNewswire/ -- Pomerantz LLP
announces that a class action lawsuit has been filed on behalf of
Gerdau S.A. ("Gerdau" or the "Company") (NYSE: GGB) and certain of
its officers. The class action, filed in United States
District Court, Southern District of New
York, and docketed under 16-cv-03925, is on behalf of a
class consisting of all persons or entities who purchased or
otherwise acquired Gerdau securities as American depositary
receipts ("ADRs") between June 2,
2011 and May 15, 2016,
inclusive (the "Class Period"). This class action seeks to
recover damages against Defendants for alleged violations of the
federal securities laws under the Securities Exchange Act of 1934
(the "Exchange Act").
If you are a shareholder who purchased Gerdau securities during
the Class Period, you have until July 25,
2016 to ask the Court to appoint you as Lead Plaintiff for
the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact
Robert S. Willoughby at
rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll
free, ext. 9980. Those who inquire by e-mail are encouraged to
include their mailing address, telephone number, and number of
shares purchased.
[Click here to join this class action]
Gerdau produces and commercializes steel products worldwide. The
Company operates through Brazil Business Operation, North America
Business Operation, South America Business Operation, and Special
Steel Business Operation segments.
The Complaint alleges that throughout the Class Period,
Defendants made materially false and misleading statements
regarding the Company's business, operational and compliance
policies. Specifically, Defendants made false and/or misleading
statements and/or failed to disclose that: (i) the Company was
engaged in a bribery scheme in collusion with Brazil's Board of Tax Appeals ("CARF"); (ii)
Gerdau had defrauded Brazilian tax authorities of roughly
$429 million in taxes; (iii) Gerdau's
Chief Executive Officer ("CEO"), Defendant André Bier Gerdau
Johannpeter ("Johannpeter") and other directors and employees of
the Company had engaged in bribery, money laundering, and influence
peddling; and (iv) as a result of the foregoing, Defendants'
statements about Gerdau's business, operations, and prospects were
false and misleading and/or lacked a reasonable basis.
On or about March 26, 2015,
Brazilian authorities announced that a Federal Police
investigation, dubbed Operation Zelotes, had uncovered a
multibillion-dollar tax fraud scheme at the Ministry of Finance
("Finance Ministry"), reporting that as many as 70 companies had
bribed members of the CARF, a body within the Finance Ministry that
hears appeals on tax disputes, to obtain favorable rulings that
recused or waived the amounts that the companies owed. On or
around March 29, 2015, it was
reported that Gerdau was among the companies under
investigation.
On December 4, 2015, the Brazilian
publication Jornal do Comércio reported that a report by a
committee of the National Congress of Brazil had named Gerdau, along with other
companies, as a beneficiary of a tax evasion scheme.
On this news, Gerdau's ADR price fell $0.11, or 6.96%, to close at $1.47 on December 4,
2015.
On or around February 25, 2016,
post-market, Brazilian police raided Gerdau offices in connection
with Operation Zelotes, as police carried out some 20 court orders
for testimony and 18 search warrants in Recife, Porto
Alegre, Rio de Janeiro, Sao
Pãulo, and Brasília. Gerdau's CEO, Defendant Johannpeter, was
among the individuals ordered to testify by day's end. In an
e-mailed statement, Gerdau stated that the Company had never
authorized the use of its name in illegal negotiations and that the
Company abided by rigorous ethical standards.
On this news, Gerdau's ADR price fell $0.03, or 3.16%, to close at $0.92 on February 25,
2016.
On February 29, 2016, Gerdau
announced that it would delay the release of its fourth-quarter
financial results as the Company "analyze[d] the case records
involving Gerdau in the recent phase of [the] Zelotes
Operation."
On May 16, 2016, various news
outlets reported that Brazil's
federal police had accused Gerdau of evading $429 million in taxes and indicted a total of 19
Gerdau personnel, including Defendant Johannpeter and some of the
Company's executives, directors and lawyers, on corruption-related
charges including bribery, money laundering, and influence
peddling.
On this news, Gerdau's ADR price fell $0.13, or over 7%, to close at $1.72 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