NASDAQ OMX

Pomerantz Achieves Significant Victory for Investors in Petrobras Litigation

Dela

NEW YORK, July 12, 2017 (GLOBENEWSWIRE)Pomerantz scored a significant victory for investors in In re Petrobras Sec. Litig. (2d Cir. July 7, 2017), one of the largest securities class actions pending in the United States. The case involves the alleged biggest corruption scandal in the history of Brazil, which, according to plaintiffs, has ensnared not only Petrobras' former executives but also Brazilian politicians, including former presidents and at least one third of the Brazilian Congress. According to plaintiffs, defendants' fraudulent scheme involved billions of dollars in kickbacks, tens of billions of dollars in overstated assets, as well as significant losses to Petrobras investors.

In a February 2, 2016 Opinion and Order, the District Court certified all the classes proposed by plaintiffs, encompassing not only purchasers of Petrobras American Depository Receipts, but also Petrobras bondholders who acquired securities pursuant to domestic transactions. Plaintiffs asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. Defendants appealed the District Court's certification opinion on multiple grounds, including for failure to satisfy the requirement of ascertainability and for failure to satisfy the burden of showing that the Petrobras securities at issue traded in efficient markets. The Second Circuit accepted the appeal and largely rejected defendants' arguments, sending the case back to the District Court for further proceedings.

The Second Circuit's decision is important and favorable precedent in several respects. First, in an issue of first impression, the Second Circuit squarely rejected defendants' invitation to adopt the heightened ascertainability requirement promulgated by the United States Court of Appeals for the Third Circuit, which would have required plaintiffs to demonstrate that determining membership in a class is "administratively feasible."  The Second Circuit's rejection of this standard is not only a victory for bondholders in securities class actions, but also plaintiffs in consumer fraud class actions and other class actions where documentation regarding Class membership is not readily attainable.

With respect to Petrobras' bondholders, the Court vacated the District Court's granting of class certification, but only to the extent that it did not perform an analysis regarding the impact of the Supreme Court's Morrison decision on the predominance requirement of class certification. Specifically, the Second Circuit required the District Court to analyze whether "common answers" to whether a transaction occurred in the United States could be ascertained via common proof.  The record in this case easily supports such a determination. Indeed, as the Second Circuit acknowledged, "the district court might properly certify one or more classes that capture all of the Securities holders who fall within the Classes as currently defined."

The Second Circuit also refused to adopt a requirement, urged by defendants, that all securities class action plaintiffs seeking class certification prove through direct evidence (i.e., via an event study) that the prices of the relevant securities moved in a particular direction in response to new information.  Reaffirming the Supreme Court's guidance in Halliburton II that the burden for plaintiffs seeking class certification "is not an onerous one," the Second Circuit rejected the notion that complicated event studies be submitted by Plaintiffs at the class certification stage. The Court agreed with plaintiffs that "event studies offer the seductive promise of hard numbers and dispassionate truth, but methodological constraints limit their utility in the context of single-firm analyses." 

Jeremy Lieberman, Managing Partner of Pomerantz commented: "We are very pleased with the Second Circuit's decision today, which provides important precedent for both domestic and foreign investors seeking redress for securities fraud impacting the U.S. capital markets. Plaintiffs allege that defendants engaged in a sweeping fraud lasting nearly a decade, which caused billions of dollars in losses to Petrobras investors, and hobbled the political and economic framework in Brazil, one of the largest economies in the world. This decision represents a victory for class action plaintiffs in securities, antitrust and consumer cases. Most significantly, the Second Circuit's decision allows this important case against Petrobras and other defendants to proceed apace, lifting the automatic stay imposed by the Second Circuit. As a result, we intend to ask Judge Rakoff to set a trial date as quickly as possible, to allow the defrauded class members to finally have their day in court."

The complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements regarding the company's business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) the company overstated its property, plant, and equipment on its balance sheet by overpricing contracts to certain companies relating to its refineries and operations and accepted kickbacks from construction companies approved for those contracts; (2) the company was receiving multi-billion dollar bribes from third-party contractors to secure contracts from Petrobras; (3) the company was in violation of its own Code of Ethics, as its employees and executives were routinely accepting bribes from certain construction companies; (4) the company's internal controls over financial reporting were ineffective and deficient; and (5) as a result of the foregoing, Petrobras' public statements were materially false and misleading at all relevant times.           

CONTACT:

Nicolas Tatin
Pomerantz LLP
ntatin@pomlaw.com




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Pomerantz LLP via Globenewswire

Om

NASDAQ OMX
NASDAQ OMX



Följ NASDAQ OMX

Skriv in din e-postadress så får du ett mejl när vi har något nytt att berätta.

Senaste pressmeddelandena från NASDAQ OMX

Abiomed Receives FDA PMA Approval for Impella RP® for Right Heart Failure21.9.2017 00:23Pressmeddelande

DANVERS, Mass., Sept.  20, 2017  (GLOBE NEWSWIRE) -- Abiomed, Inc. (NASDAQ:ABMD), a leading provider of breakthrough heart support and recovery technologies, today announced it has received U.S. Food and Drug Administration (FDA) pre-market approval (PMA) for the Impella RP® heart pump. Culminating from five years of research, this approval follows the prior FDA Humanitarian Device Exemption (HDE) received in January 2015 and adds the Impella RP heart pump to Abiomed's platform of PMA approved devices. With this approval, the Impella RP heart pump is the only percutaneous temporary ventricular support device that is FDA-approved as safe and effective for right heart failure as stated in the indication: The Impella RP System is indicated for providing temporary right ventricular support for up to 14 days in patients with a body surface area greater than or equal to 1.5 m2, who develop acute right heart failure or decompensation following left ventricular assist device impl

Senegal and France to host Global Partnership for Education Financing Conference20.9.2017 23:00Pressmeddelande

NEW YORK, Sept. 20, 2017 (GLOBE NEWSWIRE) -- The Global Partnership for Education (GPE) is delighted that the governments of Senegal and France will co-host its financing conference, which will take place on February 8, 2018 in Dakar, Senegal. A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/d3003cff-ee20-409f-9729-9a9cef1d4d3e A video accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/0a7eebb6-66b3-438b-904e-efeff83d94cf The announcement of the co-hosting was made by Presidents Macky Sall of Senegal and Emmanuel Macron of France at a high-level event on education financing held at the United Nations, which was attended by Secretary General António Guterres, several heads of state and leaders on global education. " The Global Partnership for Education has   made substantial investments in education helpin

K2 Launches New Process Automation Platform Including New Cloud Service20.9.2017 18:00Pressmeddelande

K2's process automation platform allows businesses of all types around the globe to rapidly build and deploy automation across the business. BELLEVUE, Wash., Sept. 20, 2017 (GLOBE NEWSWIRE) -- K2 today announced the availability of its new low-code process automation platform - furthering innovation in the way organizations drive digital efficiencies. With a new managed cloud service, K2 Cloud, new on-premises version, K2 Five, and completely redesigned user interfaces and experiences, the platform helps businesses of all types around the globe rapidly deliver powerful process automation and realize business productivity gains. Automating business processes across an enterprise is crucial to the success of companies in the era of digital transformation. However, many initiatives are impacted by a lack of sufficient resources and the use of inefficient systems to manage processes. K2's low-code process automation platform solves these problems by enabling organ

8x8 and Aryaka Partner to Enhance Cloud Communications for Global Enterprises20.9.2017 16:43Pressmeddelande

Strategic Alliance will improve communications experience for business users worldwide SAN MATEO, Calif., Sept. 20, 2017 (GLOBE NEWSWIRE) -- Aryaka®, the leading global SD-WAN provider, and 8x8, Inc. (NASDAQ:EGHT), the world's first Communications Cloud provider, today announced that they are entering a strategic partnership that will improve the performance and reliability of business-critical cloud unified communications. This will enable global mid-market and enterprise companies to enhance business communications, collaboration and customer engagement for their employees, customers and partners around the world. Through this partnership, Aryaka's global SD-WAN solution will provide enterprise-grade private connectivity to further enhance the superior voice and video quality delivered by the 8x8 Communications Cloud(TM). When tested against several leading Unified Communications as a Service (UCaaS) providers, 8x8 was recently found by the Tolly Group to deliver the hi

NRT Technology Corp and Gaming Payments Innovator Sightline Payments Announce Merger20.9.2017 16:00Pressmeddelande

Combination Will Accelerate Innovation in Mobile, Data, Cashless Payments, and Provisional Credit Solutions to the Worldwide Integrated Resort Casino Industry LAS VEGAS, Sept. 20, 2017 (GLOBE NEWSWIRE) -- NRT Technology Corp. ("NRT") a leading provider of integrated ticket redemption and payment services to global casino operators, and Sightline Payments ("Sightline"), developers of the disruptive Play+ platform that's powering the next generation of cashless and mobile gaming payment solutions, announced today an agreement to merge.  The company on closing will be named NRT Sightline and will form one of the largest pure play gaming payment technology companies in the world with an equity value of over $300 million. Following the closing of the transaction and subject to regulatory approvals, Sightline's CEO and Founder, Kirk Sanford, will assume the role of President and CEO of NRT Sightline.  NRT's current Founder, P

BT and Hitachi Partner to Develop Industrial and Enterprise IOT Solutions20.9.2017 15:00Pressmeddelande

Initial Focus on Asset Intelligence and Predictive Maintenance Use Cases LAS VEGAS and LONDON, Sept. 20, 2017 (GLOBE NEWSWIRE) -- BT, one of the world's leading providers of communications services and solutions, and Hitachi Vantara, a wholly owned subsidiary of Hitachi Ltd. (TSE:6501) today announced a global partnership to co-create innovative solutions in the area of industrial and enterprise internet of things (IoT). The partnership aims to drive better business outcomes for global customers, including greater efficiency, productivity and cost savings. The companies will initially focus on exploring and designing asset intelligence and predictive maintenance solutions to deliver the desired outcomes for customers in industry sectors such as manufacturing and transportation. Announced at Hitachi's inaugural user conference, Hitachi NEXT 2017, in Las Vegas today, the partnership unites BT's global network infrastructure, cloud capabiliti

I vårt pressrum kan du läsa de senaste pressmeddelandena, få tillgång till pressmaterial och hitta kontaktinformation.

Besök vårt pressrum