SAN DIEGO & BUENOS AIRES, Argentina--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE: LOMA) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1933 pursuant to Loma's November 2017 initial public offering ("IPO"). Loma, together with its subsidiaries, manufactures and markets cement and its by-products in Argentina and Paraguay.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/loma-negra-compania-industrial-argentina-sociedad-anonima
Loma Accused of Downplaying Major Risks Faced by the Company
According to the complaint, at the time of the IPO, Loma failed to disclose that the Argentine economy was slowing down and the related infrastructure projects—upon which Loma heavily depended—would be the first to be cut by the government. The truth did not begin to emerge until well after the IPO when, on May 13, 2018, UBS AG analysts double downgraded the company's ADSs to "sell" from "buy." The analysts also dropped the twelve-month price target from $26.50 to $14.50, citing macroeconomic headwinds related to the economic climate in Argentina and cuts by the Argentinian government to infrastructure spending. On May 23, 2018, news began swirling in the media that Argentina's National Commission of Competition Defense was investigating Argentina's cement companies for price-fixing. Loma's ADS price has plummeted over 35% from its IPO price, closing at $12.21 on June 26, 2018.
Loma Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can 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 is a nationally recognized leader in shareholder rights law. The firm 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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