Robbins Arroyo LLP: Embraer S.A. (ERJ) Misled Shareholders According to a Recently Filed Class Action
August 18 2016 - 3:04PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against Embraer S.A. (NYSE: ERJ)
in the U.S. District Court for the Southern District of New York.
The complaint is brought on behalf of all purchasers of Embraer
securities between April 16, 2012 and July 28, 2016, for alleged
violations of the Securities Exchange Act of 1934 by Embraer's
officers and directors. Embraer designs, develops, manufactures,
and sells aircraft and systems in Brazil, North America, Latin
America, the Asia Pacific, Europe, and internationally.
View this information on the law firm's Shareholder Rights
Blog:https://www.robbinsarroyo.com/shareholders-rights-blog/embraer/
Embraer Accused of Hiding Bribery Scheme From
Investors
According to the complaint, throughout the class period, Embraer
submitted several filings with the U.S. Securities and Exchange
Commission ("SEC") certifying that the financial information was
accurate and disclosed any material changes to the company's
internal control over financial reporting. The complaint alleges,
however, that Embraer officials failed to disclose that: (i) the
company had paid bribes to officials in the Dominican Republic to
secure contracts for the sale of aircraft; (ii) Embraer's President
and Chief Executive Officer ("CEO") was aware of the bribery
scheme; and (iii) the foreseeable consequences of the foregoing
conduct would cost Embraer hundreds of millions of dollars.
On September 23, 2014, The Wall Street Journal reported that
Brazilian authorities filed bribery charges against eight Embraer
employees, claiming that they had bribed officials in the Dominican
Republic to secure a $92 million contract. On March 16, 2016,
various media outlets reported that a sales consultant who
purportedly paid bribes on behalf of Embraer told Brazilian
prosecutors that he believed the company's top managers, including
the CEO, knew of the illicit payments made in connection with the
Dominican Republic sales. Embraer then announced on June 9, 2016,
that its CEO was stepping down after 32 years with the company. On
July 29, 2016, Embraer revealed that it was recognizing a $200
million loss contingency in the quarter ended June 30, 2016,
reflecting the likely outcome of investigations by the U.S.
Department of Justice and the SEC. In addition, Embraer reported a
net loss for the quarter of $99.4 million. Since news of Embraer's
troubles became public, its stock declined over 38% to close at
$18.27 per share on July 29, 2016.
Embraer Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20160818006152/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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