(GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against JBS S.A. (“JBS” or the “Company”) (OTCQX:JBSAY) and certain of its officers. The class action, filed in United States District Court, Eastern District of New York, is on behalf of a class consisting of investors who purchased or otherwise acquired the publicly traded American Depositary Receipts (‘ADRs”) of JBS securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased JBS ADRs securities between June 2, 2015 and May 19, 2017, both dates inclusive, you have until July 21, 2017 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 [email protected] 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.
JBS processes and sells beef, lamb, pork, and chicken products in Brazil and internationally. The Company is incorporated in the Federative Republic of Brazil and its principal executive offices are in Sao Paulo, Brazil.
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: (1) JBS executives bribed regulators and politicians to subvert food inspections of its plants and overlook unsanitary practices, such as processing rotten meat and running plants with traces of salmonella; (2) JBS Chairman Joesley Batista was providing monthly bribery payments to a former Brazilian government official and a lobbyist; (3) there were irregularities with the loans JBS received from Brazilian state-owned development bank BNDES; (4) JBS and other entities controlled by JBS Chairman Joesley Batista and JBS CEO Wesley Batista made suspicious trades that exhibit signs of possible insider trading prior to the revelation of a plea deal by JBS’ top executives; and (5) as a result, defendants’ statements about JBS’ business, operations and prospects were materially false and misleading and/or lacked a reasonable bases at all relevant times.
On March 17, 2017, Reuters published a report entitled “Brazil police accuse BRF, JBS of subverting food inspections.”
On this news, shares of JBS fell $0.71 per share or over 9.2% from its previous closing price to close at $6.96 per share on March 17, 2017, damaging investors.
On May 12, 2017, news outlets reported that Brazilian federal police are investigating whether JBS received favorable treatment from state-owned development bank BNDES. The Brazilian federal audit court found irregularities related to a 2007 BNDES loan of 1.13 billion reais ($362 million) to JBS to finance the acquisition of Swift & Co. Investigators suspect fraud in those transactions.
On this news, shares of JBS fell $0.28 per share or over 8% from its previous closing price to close at $6.96 per share on May 12, 2017, further damaging investors.
On May 17, 2017, news outlets reported during aftermarket hours that JBS Chairman Joesley Batista was recorded telling the President of Brazil that J. Batista was providing monthly payments to Eduardo Cunha, former speaker of the lower house of representatives and lobbyist Lucio Funaro so that they would remain silent while in jail. J. Batista and his brother W. Batista presented the recording to prosecutors as part of plea bargain negotiations. JBS also hired a law firm to discuss a leniency deal with the U.S. Department of Justice.
On this news, shares of JBS fell $1.04 per share or over 16% from its previous closing price to close at $5.08 per share on May 18, 2017, further damaging investors.
On May 19, 2017, news outlets reported during aftermarket hours that Brazil’s securities regulator said it launched four new probes against meatpacker JBS SA and other companies controlled by Defendants W. Batista and J. Batista to investigate suspicious trades made before markets were rattled by the revelation of a plea deal by the company’s top executives.
On this news, shares of JBS fell $1.68 per share or over 31% from its previous closing price to close at $3.68 per share on May 22, 2017, further damaging investors.
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
Robert S. Willoughby