NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in JBS S.A. (“JBS” or the “Company”) (OTC:JBSAY) of the July 21, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
If you invested in JBS American Depositary Receipts (“ADRs”) between June 2, 2015 and May 19, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/JBS. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased JBS ADRs between June 2, 2015 and May 19, 2017 (the “Class Period”). The case, Murphy III v. JBS S.A. et al, No. 17-cv-03084 was filed on May 22, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) JBS executives bribed regulators and politicians to subvert food inspections of its plants and overlook unsanitary practices; (2) as a result, the Company’s statements about its business, operations and prospects were materially false and misleading and/or lacked a reasonable basis.
Specifically, on March 17, 2017, Reuters published a report revealing that Brazilian federal police raided JBS, among others, following a two-year investigation into alleged bribery of regulators regarding the inspections of their facilities. The investigation, known as “Operation Weak Flesh,” exposed approximately 40 cases of meatpackers who bribed inspectors and politicians to overlook unsanitary procedures. It was reported that Brazilian police arrested two JBS employees, and 20 public officials.
On this news, JBS’ ADRs fell from a closing price of $7.67 on March 16, 2017 to a closing price of $6.96 on March 17, 2017—a $0.71 or a 9.26% drop.
Then, on May 12, 2017, Brazilian news outlets reported that Brazilian authorities are investigating whether the company received preferable treatment from state-owned development bank BNDES. After it was alleged that recordings existed of JBS executives bribing current members of the Brazilian legislature, on May 19, 2017, news outlets reported that certain JBS executives are seeking to enter a plea deal with Brazilian securities regulators.
During May, JBS’ ADRs fell from a closing price of $10.79 on May 12, 2017 to a closing price of $5.98 on May 22, 2017 —a $4.81 or a 44.6% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding JBS’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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