Kobe Steel, Ltd. : American Depositary Receipts Securities Litigation
On or around 03/12/2019 (Date of order of final judgment)
Filing Date: December 26, 2017
According to the law firm press release, Kobe Steel is one of Japan’s largest steel manufacturers and a major supplier of aluminum and copper products.
During the Class Period, Kobe Steel repeatedly misrepresented the quality of its products and the integrity of its operations by emphasizing that it offers “excellent products and services” with “special attention to product safety” as it has “an organizational culture that is highly sensitive to compliance issues.”
Defendants’ statements pertaining to Kobe Steel’s products and performance of its operations were materially false and misleading because the company had intentionally falsified data on many of its aluminum, copper, iron and steel products, and knowingly sold products that failed quality control tests.
During the week of October 13, 2017, Kobe Steel admitted to falsifying inspection certificates on its core products in its aluminum and copper and iron and steel segments and not complying with customer standards. As a result, Kobe Steel ADRs cumulatively declined $2.37 or approximately 40% during that week.
On April 4, 2018, the Court issued an Order appointing Lead Plaintiff and Counsel.
On August 10, 2018, the Parties reached an agreement in principle to resolve their dispute pursuant to a class-wide Settlement. On September 21, the Parties entered into a Stipulation and Agreement of Settlement. The Court issued an Order preliminarily approving the Settlement on November 27. On March 12, 2019, the Court granted final approval of the Settlement and entered Final Judgment.
Company & Securities Information
Defendant: Kobe Steel, Ltd.
Sector: Basic Materials
Industry: Iron & Steel
Ticker Symbol: KBSTY
Company Market: OTC-BB
Market Status: OTC
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.