BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Gol Linhas Aereas Inteligentes S.A. (“Gol” or the “Company”) (NYSE: GOL) securities between March 14, 2019 and July 22, 2020, inclusive (the “Class Period”). Gol investors have until November 10, 2020 to file a lead plaintiff motion.
Investors suffering losses on their Gol investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On June 16, 2020, Gol stated that it could not timely file its fiscal 2019 annual report. The Company also disclosed that its independent auditor’s report on Gol’s internal control over financial reporting would “probably include one or more material weaknesses” and that the report “will probably include an emphasis paragraph regarding the [Company’s] ability to continue as a going concern.”
On this news, the Company’s shares fell $0.27, or 3.5%, to close at $7.30 per share on June 16, 2020, thereby injuring investors.
Then, on June 29, 2020, after the market closed, Gol filed its fiscal 2019 annual report. Therein, Gol’s auditor raised significant concerns about the Company’s accounting, including that Gol lacked “(i) effective policies and procedures related to the identification and disclosure of material uncertainties in the going concern analysis and (ii) effective review of financial statement information, and related presentation and disclosure requirements.”
On this news, the Company’s shares fell $0.14, or 2%, to close at $6.78 per share on June 30, 2020, thereby injuring investors further.
Then, on July 23, 2020, Gol announced the termination of KPMG Auditores Independentes as its external auditor.
On this news, the Company’s share price fell $0.55, or 7%, to close at $7.25 per share on July 23, 2020, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Gol had material weaknesses in its internal controls; (2) there was substantial doubt as to the Company's ability to continue to exist as a going concern because of negative net working capital and net capital deficiency; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased Gol securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.