Gerdau S.A. : American Depositary Receipts Securities Litigation
On or around 10/20/2017 (Date of order of final judgment)
Filing Date: May 26, 2016
According to the law firm press release, Gerdau S.A. produces and commercializes steel products worldwide. The Company operates through Brazil Business Operation, North America Business Operation, South America Business Operation, and Special Steel Business Operation segments.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company was engaged in a bribery scheme in collusion with Brazil’s Board of Tax Appeals (“CARF”); (ii) Gerdau had defrauded Brazilian tax authorities of roughly $429 million in taxes; (iii) Gerdau’s Chief Executive Officer and other directors and employees of the Company had engaged in bribery, money laundering, and influence peddling; and (iv) as a result of the foregoing, Defendants’ statements about Gerdau’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
A consolidated Complaint was filed on October 31, 2016.
The parties entered into a Stipulation of Settlement on July 5, 2017. Preliminary approval was granted on July 10. Final approval was granted October 20, and this case was dismissed.
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