NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, announces it is investigating potential securities claims on behalf of shareholders of JBS S.A. (OTCMKTS:JBSAY) resulting from allegations that JBS may have issued materially misleading business information to the investing public.
On March 17, 2017, news outlets reported that Brazilian federal police raided the offices of JBS and dozens of other meatpackers following a two-year investigation into alleged bribery of regulators to subvert inspections of their plants. The probe, known as “Operation Weak Flesh,” had uncovered about 40 cases of meatpackers who had bribed inspectors and politicians to overlook unsanitary practices such as processing rotten meat and running plants with traces of salmonella. Police arrested two JBS employees, as well as 20 public officials. JBS said in a securities filing that three of its plants and one of its employees were targeted in the probe. On this news, shares of JBS fell $0.71 per share or over 9% 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 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. Batista and his brother Wesley Batista, CEO of JBS, 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 sharply during intraday trading on May 18, 2017.
Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by JBS investors. If you purchased shares of JBS, please visit the firm’s website at http://www.rosenlegal.com/cases-1130.html for more information. You may also contact Phillip Kim or Kevin Chan of Rosen Law Firm toll free at 866-767-3653 or via email at email@example.com or firstname.lastname@example.org.
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Since 2014, Rosen Law Firm has been ranked # 2 in the nation by Institutional Shareholder Services for the number of securities class action settlements annually obtained for investors.
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