BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of investors of Gerdau S.A. (“Gerdau” or the “Company”) (NYSE: GGB) concerning the Company and its officers’ possible violations of federal securities laws. Investors with losses on their Gerdau investments are encouraged to contact Howard G. Smith, Esq. to discuss their legal rights.
On or around March 26, 2015, several news outlets reported that Gerdau was raided by the Brazilian Federal Police as a part of "Operation Zelotes", an investigation into alleged tax fraud by a number of Brazilian companies. According to reports, Gerdau is accused of having entered into a bribery scheme and defrauding Brazilian tax authorities of over $380 million.
On this news, the value of Gerdau’s American Depository Receipts ("ADRs") fell over 11%, to close on March 27, 2015 at just $3.06 per share on unusually heavy volume.
Then on May 16, 2016, numerous media outlets reported that Brazil's federal police had accused Gerdau of evading $429 million in taxes and indicted several Gerdau executives, including Chief Executive Officer André Gerdau Johannpeter, on corruption-related charges involving bribery, money laundering, and influence peddling.
On this news, Gerdau's ADRs fell over 7%, to close at just $1.72 per share on May 16, 2016.
If you purchased Gerdau securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.
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