PHILADELPHIA--(BUSINESS WIRE)--The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit has been filed on behalf of investors who purchased BRF S.A. (“BRF” or the “Company”) (NYSE: BRFS) securities between April 4, 2013 and March 2, 2018, inclusive (the “Class Period”).
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s compliance with anti-corruption laws. As detailed in the complaint, on March 17, 2017, media outlets revealed that Brazilian police had raided BRF facilities and arrested Company employees in a bribery crackdown known as “Operation Weak Flesh.” The probe had reportedly found evidence that BRF had been “bribing inspectors and politicians to overlook unsanitary practices such as processing rotten meat and shipping exports with traces of salmonella.” On this news, the price of BRF American Depositary Receipts (“ADRs”) representing common stock declined $0.99 per ADR, or nearly 8%, to close at $11.81 per ADR on March 17, 2017.
Nearly one year later, on February 23, 2018, BRF announced that Operation Weak Flesh had resulted in “very serious problems” for the Company, stating that disruptions in productivity caused by the probe had made it more difficult for BRF to distribute its products in 2017 and contributed to the Company’s weak financial performance. On this news, the price of Company ADRs declined $0.76 per ADR, or approximately 8%, to close at $8.73 per ADR on February 23, 2018.
Then, on March 5, 2018, Reuters reported that Brazilian police had arrested Pedro Faria, BRF’s former Chief Executive Officer, on charges that Faria knew that the Company had used illicit means to pass food inspections. On this news, the price of Company ADRs declined $18.32 per ADR, or more than 19%, to close at $7.59 per ADR on March 5, 2018.
If you purchased BRF securities during the Class Period, you may, no later than May 11, 2018, move to be appointed as a Lead Plaintiff in this action. A Lead Plaintiff is a representative chosen by the Court that acts on behalf of other class members in directing the litigation.
If you have sustained substantial losses in BRF securities during the Class Period and wish to move to be appointed as Lead Plaintiff, please contact Spector, Roseman & Kodroff, P.C. toll-free at 888-844-5862 or via e-mail at email@example.com. For more detailed information about the firm please visit http://srkattorneys.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract, and commercial claims. The firm’s reputation for excellence has been recognized by courts which have appointed the firm as lead counsel in numerous major class actions. The firm has recovered hundreds of millions of dollars through judgments and settlements on behalf of thousands of defrauded shareholders and companies.