Gerdau SA (ADR) (NYSE: GGB) Investor Securities Class Action Lawsuit 05/26/2016

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Company Name(s): 
Gerdau
Case Name: 
Gerdau Shareholder Class Action Lawsuit 05/26/2016
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: GBB
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
05/26/2016
Class Period Begin: 
04/23/2012
Class Period End: 
05/16/2016
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
07/25/2016
Date Settled: 
07/10/2017
Settlement Amount: 
$15,000,000
Deadline to Participate in Settlement: 
11/28/2017
Settlement Notice: 
Settlement Proof: 
Summary: 

October 20, 2017 - The court approved the settlement.

July 10, 2017 - The court preliminarily approved the settlement.

July 6, 2017 - Parties filed a stipulation of settlement.

January 17, 2017 - Defendants filed a motion to dismiss.

October 31, 2016 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased Gerdau SA (ADR) (NYSE: GGB) common shares between April 23, 2012 and May 16, 2016. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between April 23, 2012 and May 16, 2016.

August 9, 2016 - Lead plaintiff and lead counsel were appointed.

July 25, 2016 - Lead plaintiff motions were filed.

May 26, 2016 - An investor in shares of Gerdau SA (ADR) (NYSE: GGB) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Gerdau SA in connection with certain allegedly false and misleading statements made between June 2, 2011 and May 15, 2016.

According to the complaint the plaintiff alleges on behalf of purchasers of Gerdau SA (ADR) (NYSE: GGB) common shares between June 2, 2011 and May 15, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between June 2, 2011 and May 15, 2016 the defendants issued false and misleading statements to investors and/or failed to disclose that the Company was engaged in a bribery scheme in collusion with Brazil's Board of Tax Appeals ("CARF"), that Gerdau had defrauded Brazilian tax authorities of roughly $429 million in taxes, that Gerdau SA's Chief Executive Officer ("CEO"), defendant André Bier Gerdau Johannpeter and other directors and employees of the Company had engaged in bribery, money laundering, and influence peddling, and that as a result, Gerdau SA’s public statements were materially false and misleading at all relevant times.

On May 16, 2016, various news outlets reported that Brazil’s federal police accused Gerdau SA of evading $429 million in taxes and indicted certain Gerdau SA executives, including Chief Executive Officer André Gerdau Johannpeter, on corruption-related charges. The charges included bribery, money laundering, and influence peddling.

Shares of Gerdau SA (ADR) (NYSE: GGB) declined to as low as $1.59 per share on May 17, 2016.