Sadia S.A. Class 11/5/2008

You must submit the settlement "Proof" form attached below, in order to participate in this settlement. There is a strict deadline of February 10, 2012 by which all claims must be submitted. The instructions for submitting are included in the "Proof" and the "Notice" files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, FOLLOW THE DIRECTIONS IN THE "PROOF".

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Sadia
Case Name: 
Sadia S.A. Class 11/5/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Case Status: 
Settlement Approved
Affected Securities
NYSE: SDA
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/05/2008
Class Period Begin: 
04/30/2008
Class Period End: 
09/25/2008
Date Settled: 
12/22/2011
Settlement Amount: 
$27,000,000
Deadline to Participate in Settlement: 
02/10/2012
Settlement Notice: 
application/pdf iconSadia_Notice_2011.pdf
Settlement Proof: 
application/pdf iconSadia_Proof_2011.pdf
Summary: 

DECEMBER 2011 - Settlement approved.

SEPTEMBER 2011 - According to the Notice:

Securities Involved: Sadia, S.A. (“Sadia” or the “Company”) ADRs purchased or otherwise acquired from April 30, 2008 to September 25, 2008, inclusive (the “Class Period”) and held through the close of the market on September 25, 2008.

Settlement Amount: $27,000,000 in cash plus interest (the “Settlement Fund”). Your recovery from the Settlement Fund will depend on the number of Sadia ADRs you purchased and/or acquired during the Class Period, and the timing of your sales, if any, of such Sadia ADRs. Depending on the number of claims filed and when Class Members purchased, acquired and sold their Sadia ADRs, the estimated average recovery per damaged Sadia ADR will be approximately $1.81. Please Note: This average is only an estimate, and is before deduction of court-approved fees and expenses.

The Lawsuit: The Settlement resolves class action litigation over allegations as to whether Defendants (i.e., Sadia, Adriano Lima Ferreira, Welson Teixeira, Jr., Gilberto Tomazoni, Walter Fontana Filho and Eduardo Fontana d’Avila) misrepresented the true earnings and financial condition of the Company by entering into currency hedging contracts that were both larger than necessary to insure the Company’s losses on future sales and in violation of company policy, and whether these alleged misrepresentations and omissions inflated the price of Sadia ADRs during the Class Period, causing financial injury to members of the Class. See Question 2 below for more information.

NOVEMBER 2008 - On Wednesday, November 05, 2008, a shareholder of Sadia S.A. (NYSE:SDA) has filed a proposed securities class action lawsuit on behalf of of all investors who purchased Sadia S.A. (NYSE: SDA) American Depository Receipts (ADRs) and/or common stock between May 1, 2008 through September 26, 2008 (NYSE: SDA) in the United States District Court for the Southern District of New York.

According to the complaint the plaintiff seeks damages for violations of federal securities laws on behalf of all investors who purchased Sadia S.A. (NYSE: SDA) American Depository Receipts (ADRs) and/or common stock between May 1, 2008 through September 26, 2008. Specifically Sadia S.A. entered into undisclosed currency derivative contracts to purportedly hedge against the Sadia S.A.’s U.S. dollar exposure and characterized the amounts of these contracts as “nominal.”, so the lawsuit. But the plaintiff alleges that these contracts violated Sadia S.A.’s policy in that they were far larger than necessary to hedge normal business operations and resulted in a loss of $365 million and as a result of defendants’ admission of violating Sadia S.A.’s policy regarding currency hedging the ADRs of Sadia S.A. closed at $9.50 per share, down from the previous day’s close of $15.27, a decline of 38%.