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According to the complaint, 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, the defendants made false and/or misleading statements and/or 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”), Defendant Frederico Pinheiro Fleury Curado (“Curado”) was aware of the bribery scheme; (iii) the foreseeable consequences of the foregoing conduct would cost Embraer hundreds of millions of dollars; and (iv) as a result of the foregoing, the defendants’ statements about Embraer’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
According to the complaint, on November 1, 2013, after the market closed, The Wall Street Journal reported that Embraer was under investigation by the U.S. and Brazilian governments concerning bribery of Dominican Republic officials to secure a contract for the sale of military aircraft. Following this news, Embraer’s ADRs fell $0.17, or 0.57%, to close at $29.55 on November 4, 2013.
On September 23, 2014, The Wall Street Journal reported that Brazilian authorities had filed bribery charges against eight Embraer employees, claiming that they had bribed officials in the Dominican Republic to secure a $92 million contract. Following this news, Embraer’s ADRs fell $0.26, or 0.68%, to close at $38.25 on September 24, 2014.
On March 16, 2016, after the market closed, various media outlets reported that Elio Moti Sonnenfeld, a sales consultant who purportedly paid bribes on behalf of Embraer, had told Brazilian prosecutors that he believed the company’s top managers, including Defendant Curado, knew of the illicit payments made in connection with the Dominican Republic sales. Then, on June 9, 2016, after the market closed, Embraer announced that Defendant Curado was stepping down as CEO after 32 years with the company. Following this news, Embraer’s ADRs fell $1.18, or 5.44%, to close at $20.51 on June 10, 2016.
Finally, on July 29, 2016, Embraer filed a Form 6-K with the SEC, stating, in relevant part, that “Embraer is recognizing a US$ 200 million loss contingency in the quarter ended June 30, 2016.” Following this news, Embraer’s ADR price fell $2.93, or 13.82%, to close at $18.27 on July 29, 2016.
If you are a member of the class described above, you may no later than October 7, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
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