NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Kobe Steel, Ltd. (“Kobe” or the “Company”) (OTC:KBSTY) (OTC:KBSTF) of the February 26, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Kobe American Depositary Receipts (“ADRs”) between May 29, 2013 and October 12, 2017 and would like to discuss your legal rights, click here: www.faruqilaw.com/KBSTY. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Kobe ADRs between May 29, 2013 and October 12, 2017 (the “Class Period”). The case, Aude v. Kobe Steel, Ltd. et al, No. 1:17-cv-10085 was filed on December 26, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and/or misleading statements and/or failing to disclose that: (a) Kobe falsified data on many of its aluminum, copper and steel products sold to customers; (b) Kobe sold products that failed quality control tests in violation of laws and regulations; (c) Kobe’s financial performance relied on selling products that did not meet quality standards in violation of laws and regulations; (d) Kobe would incur significant costs and lose customers if customers became aware of the aforementioned; (e) Kobe’s compliance initiatives, corporate governance and risk management activities were ineffective and inadequate; (f) Kobe’s internal reporting systems failed to foster employee participation and adequately address employee concerns; and (g) as a result, Kobe’s statements about its business, operations and prospects were materially false and/or misleading and/or lacked a reasonable basis.
Specifically, between October 8, 2017 and October 13, 2017, the Company admitted to falsifying inspection certificates on its core products in its aluminum and copper and iron and steel segments and not complying with customer standards. As a result, the price of Kobe ADRs significantly declined.
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 Kobe’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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