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Case Status:    SETTLED
On or around 07/17/2013 (Ongoing date of last review)

Filing Date: November 26, 2008

According to a press release dated November 26, 2008, Aracruz is a major Brazilian manufacturer of forest products, which they market to manufacturers of consumer paper products around the world.

During the Class Period, Aracruz entered into undisclosed currency derivative contracts to purportedly hedge against the Company's U.S. dollar exposure. The Company characterized the use of these contracts as protection against foreign interest rate volatility and assured investors that this type of trading did not represent "a risk from an economic and financial standpoint." However, these contracts
violated Company policy in that they were far larger than necessary to hedge normal business operations. As a result of Aracruz's clandestine and speculative currency wagers, credit rating agencies downgraded Aracruz, the Company's CFO resigned, and Aracruz's stock suffered a severe decline, plummeting to the lowest levels in 14
years. On October 3, 2008, the price of the ADR's traded on the New York Stock Exchange closed at $23.40, down $7.84 per share, a decline of 25%. The Company's common stock suffered similar drastic declines on the Sao Paulo Bovespa.

On August 07, 2009, an order on Motions for Lead Plaintiff Status and For Approval of Selection of Lead Counsel were decided. The court appointed the City Pension Fund for Firefighters and Police Officers in the City of Miami Beach as lead plaintiff and the law firm of Saxena White P.A. is appointed lead counsel.

On October 5, 2009, an amended complaint was filed on behalf of the plaintiffs.

On September 30, 2010, the Court issued an Order denying the Defendant's Motion to Dismiss.

On September 16, 2011, the Court issued an Omnibus Order and, among the various orders, affirmed its previous order Denying the Defendant's Motion to Dismiss dated September 30, 2010. The Court also granted in part and denied in part the individual defendant's motions to dismiss, upholding claims under Section 20(a).

On November 21, 2012, the Court issued an Order granting the Parties' Joint Motion to Stay All Proceedings. The parties have reached a proposed settlement agreement, and this case is stayed and administratively closed.

On January 24, 2013 the parties entered into a Stipulation of Settlement. The Settlement was preliminarily approved on March 14, 2013.

COMPANY INFORMATION:

Sector: Basic Materials
Industry: Paper & Paper Products
Headquarters: Brazil

SECURITIES INFORMATION:

Ticker Symbol: ARA
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. Florida
DOCKET #: 08-CV-23317
JUDGE: Hon. Joan A. Lenard
DATE FILED: 11/26/2008
CLASS PERIOD START: 04/07/2008
CLASS PERIOD END: 10/02/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Saxena White PA (Boca Raton)
    2424 N. Federal Highway, Suite 257, Saxena White PA (Boca Raton), FL 33431
    561.394.3399 561.394.3399 ·
No Document Title Filing Date
COURT: S.D. Florida
DOCKET #: 08-CV-23317
JUDGE: Hon. Joan A. Lenard
DATE FILED: 10/05/2009
CLASS PERIOD START: 04/07/2008
CLASS PERIOD END: 10/02/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Saxena White PA (Boca Raton)
    2424 N. Federal Highway, Suite 257, Saxena White PA (Boca Raton), FL 33431
    561.394.3399 561.394.3399 ·
No Document Title Filing Date