SAN FRANCISCO, Aug. 10, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP alerts investors in Embraer S.A. (NYSE:ERJ) to the pending securities class action filed in the United States District Court for the Southern District of New York and to the October 7, 2016 Lead Plaintiff Deadline.
If you purchased or otherwise acquired securities of Embraer S.A. between April 16, 2012 and July 28, 2016 and suffered over $75,000 in losses contact Hagens Berman Sobol Shapiro LLP. For more information visit
https://www.hbsslaw.com/cases/ERJ
or contact Reed Kathrein, who is leading the firm’s investigation, by calling 510-725-3000 or emailing ERJ@hbsslaw.com.
This class action concerns Embraer’s alleged failure to disclose its illicit bribery scheme, during which the Company paid Dominican Republic officials to secure contracts for the sale of Embraer aircraft.
Since early 2010, the United States Securities and Exchange Commission (“SEC”) has been investigating Embraer for possible violations of the U.S. Foreign Corrupt Practices Act (“FCPA”).
The SEC reportedly provided evidence from its investigation to Brazil’s law enforcement authorities, who filed criminal bribery charges against eight of Embraer’s former executives and directors and an Embraer sales consultant in September 2014.
On March 16, 2016, after admitting to bribery, the criminally-charged sales consultant stated that the Company’s CEO (Federico Pinheiro Fleury Curado) and other top management knew of the illicit bribery scheme.
The Company announced on June 9, 2016, that they would replace their CEO in July 2016. On this news, the price of Embraer’s American Depository Receipts (ADRs) fell 5.44% to $20.51.
On July 29, 2016, Embraer abruptly reported a quarterly loss of $99.4 million, due in part to a $200 million loss contingency “reflecting the likely outcome” of its negotiations with U.S. officials conducting the bribery probe. This news sent the price of Embraer ADRs down nearly 14% to close at $18.27.
Embraer and its executives allegedly knew and failed to disclose that (1) the Company undertook an illicit bribery scheme; (2) the CEO and top executives knew of the illicit scheme; (3) the consequences of the illicit scheme would cost the Company hundreds of millions of dollars; and, as a result, (4) the Company’s reported financials were false.
“Among other facts, we’re investigating when the $200 million contingency became probable and should have been reported,” said Hagens Berman partner Reed Kathrein.
Whistleblowers: Persons with non-public information regarding Embraer S.A. should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email ERJ@hbsslaw.com.
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