NEW YORK, Aug. 9, 2016 /PRNewswire/ -- Attorney Advertising
-- Bronstein, Gewirtz & Grossman, LLC reminds
investors that a securities class action has been filed in the
United States District Court, Southern District of New York on behalf of those who purchased
shares of Embraer S.A. ("Embraer" or the "Company") (NYSE: ERJ)
between April 16, 2012 and
July 28, 2016 inclusive (the "Class
Period").
Embraer designs, develops, manufactures, and sells aircraft and
systems in Brazil, North America, Latin
America, the Asia-Pacific
region, Europe, and
internationally.
The Complaint alleges that throughout the Class Period,
Defendants made false and/or misleading statements, as well as
failed to disclose material adverse facts about the Company's
business, operations, and prospects. Specifically, Defendants made
false and/or misleading statements and/or failed to disclose that:
(1) Embraer paid bribes to Dominican
Republic officials to secure contracts for aircraft sales;
(2) Embraer's President and Chief Executive Officer ("CEO"),
Defendant Frederico Pinheiro Fleury
Curado ("Curado") had knowledge of the bribe; (3) the
predictable consequences of this misconduct would cost Embraer
hundreds of millions of dollars; and (4) consequently, Defendants'
statements about Embraer's business, operations, and prospects were
false and misleading and/or lacked a reasonable basis.
On November 1, 2013, post-market,
The Wall Street Journal published an article explaining that
Embraer was under investigation by the U.S. and Brazilian
governments regarding a bribery scheme with Dominican Republic officials to close a deal
for military aircrafts. Following this news, Embraer's ADRs dropped
$0.17 per share, or 0.57%, to close
at $29.55 on (the next trading day,)
November 4, 2013.
On September 23, 2014, The Wall
Street Journal published how the Brazilian authorities filed a
criminal complaint with charges of bribery against an Embraer sales
consultant and eight former Ebraer executives and directors for
Embraer, which had seemingly been done with the approval of
Embraer's top management. The charges were based on evidence
provided by U.S. authorities, who had been investigating Embraer
possible violations of the U.S. Foreign Corrupt Practices Act
("FCPA") since 2010. Embraer had bribed Dominican Republic officials to secure a
$92 million contract. Following this
news, Embraer's ADRs dropped $0.26
per share, or 0.68%, to close at $38.25 on September 24,
2014.
On March 16, 2016, post-market,
several news sources reported that sales consultant Elio Moti Sonnenfeld, who allegedly paid bribes
for Embraer, told Brazilian authorities that he believed Embraer's
top managers, including Defendant Curado, knew of the criminal
'imbursements' that were paid for the Dominican Republic sales.
On June 9, 2016, post-market,
Embraer announced that Embraer stated that its Chief Executive
Officer Frederico Curado would be
stepping down after 32 years with the Company, and that Paulo César
de Souza e Silva would fill the position. Following this news,
Embraer's ADRs dropped $1.18 per
share, or 5.44%, to close at $20.51
on June 10, 2016.
Later, on July 29, 2016, Embraer
filed a Form 6-K with the SEC and stated in part: "[N]egotiations
with the U.S. Department of Justice (DOJ) and the Securities and
Exchange Commission (SEC) for the settlement of the allegations of
non-compliance with the U.S. Foreign Corrupt Practices Act (FCPA)
have significantly progressed, to the point that Embraer is
recognizing a US$ 200 million loss
contingency in the quarter ended June 30,
2016.
The Company also released its quarterly financial report,
showing a loss of $99.4 million, or
$0.55 per share, after setting aside
$200 million in connection with the
U.S. FCPA probe. Following this news, Embraer's ADRs dropped
$2.93 per share, or 13.82%, to close
at $18.27 on July 29, 2016.
No Class has yet been certified in the above action. If you wish
to review a copy of the Complaint or join the action, please visit
the firm's site: http://www.bgandg.com/erj. To discuss this action,
or for any questions, please contact Peretz
Bronstein, Esq. or his Investor Relations Analyst,
Yael Hurwitz of Bronstein, Gewirtz
& Grossman, LLC at 212-697-6484 or via email info@bgandg.com.
Those who inquire by e-mail are encouraged to include their mailing
address and telephone number. If you suffered a loss in
Embraer you have until October 7,
2016 to request that the Court appoint you as lead
plaintiff. Your ability to share in any recovery doesn't require
that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation
boutique. Our primary expertise is the aggressive pursuit of
litigation claims on behalf of our clients. In addition to
representing institutions and other investor plaintiffs in class
action security litigation, the firm's expertise includes general
corporate and commercial litigation, as well as securities
arbitration. Attorney advertising. Prior results do not
guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com
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