SAN DIEGO & KOBE, Japan--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that investors filed a class action complaint against Kobe Steel, Ltd. (Other OTC: KBSTY) on behalf of all purchasers of Kobe American Depositary Receipts ("ADRs") between May 29, 2013 and October 12, 2017, for alleged violations of the Securities Exchange Act of 1934 by Kobe's officers and directors. Kobe engages in materials, machinery, and electric power businesses in Japan, China, and internationally.
View this information on the law firm's Shareholder Rights Blog:
Kobe Accused of Falsifying Data on its Products
According to the complaint, on May 29, 2013, Kobe launched a new business plan that was intended to make the company more efficient and profitable for sustained growth. Throughout the class period, Kobe maintained that the business plan was "making steady progress" and emphasized that the company fostered a culture of high ethical standards and was "highly sensitive to compliance issues." To the contrary, Kobe falsified data on its aluminum, copper, and steel products and sold products that failed quality control tests in violation of laws and regulations. On October 10, 2017, Reuters reported that several manufacturers had confirmed use of Kobe's affected products, and on October 13, 2017, several media outlets revealed that the number of impacted customers had more than doubled from the initial estimates of 200 customers. Since news of Kobe's troubles became public, the company's ADRs declined over 40% to close at $3.55 per ADR on October 13, 2017, and have yet to regain their value.
Kobe Shareholders Have Legal Options
If you would like more information about your rights and potential remedies contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP, a nationally recognized leader in shareholder rights law, represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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