According to the law firm press release, the complaint charges YPF, certain of its officers and directors and the underwriters of the Offering with violations of the Securities Act. YPF describes itself as “Argentina’s leading energy company, operating a fully integrated oil and gas chain with leading market positions” in the exploration, development and production of crude oil, natural gas and liquefied petroleum gas, and the refining, marketing, transportation and distribution of energy based products.
On or about November 26, 2010, YPF filed a Form F-3 Registration Statement (the “Registration Statement”) for the Offering with the SEC. On or about March 23, 2011, the Prospectus with respect to the Offering, which forms part of the Registration Statement, became effective and more than 26.2 million shares of YPF ADSs were sold to the public at $41 per share, thereby valuing the total size of the Offering at more than $1 billion.
The complaint alleges that the Registration Statement, and the documents referenced and incorporated therein, contained numerous untrue statements of material facts and omitted to state material facts required to be stated therein in order to make the statements contained therein not misleading. Specifically, the complaint alleges that the Registration Statement failed to disclose and misrepresented the following adverse facts, among others, which existed at the time of the Offering: (i) that the Company faced a risk of nationalization by the Argentinean government; (ii) that the risk of nationalization had increased because of the Company’s failure to: (a) adequately produce oil and gas within Argentina; and (b) reinvest a substantial portion of its profits back into the Company and its operations; (iii) that the Company was in breach of its concession contracts with various Argentinean provinces; and (iv) that nationalization by the Argentinean government would likely have a severe adverse effect on shareholders and on the Company’s market value. According to the complaint, the instructions and regulations that govern the preparation of the Registration Statement require that YPF disclose the facts detailed above. The Registration Statement, however, failed to include these material facts.
On May 14, 2013, the Court appointed Lead Plaintiff pursuant to 15 U.S.c. §§77z1 (a)(3)(B) and 78u-4(a)(3)(B); and Robbins Geller Rudman & Dowd LLP is hereby appointed Lead Counsel for the class pursuant to 15 U.S.C. §§77z-1(a)(3)(B)(v) and 78u-4(a)(3)(B)(v).
On June 6, 2013, the lead plaintiff claimed that this action concerns materially false and misleading statements and material omissions regarding YPF and its operations.