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According to the complaint, Freeport is a natural resource company, engages in the acquisition of mineral assets, oil, and natural gas resources. The company primarily explores for copper, gold, molybdenum, cobalt, silver, and other metals, as well as oil and gas. Freeport’s co-founder and former CEO, James Moffett (“Moffett”), played a key role in developing the company’s Indonesian operations, and often led negotiations for Freeport with Indonesian legislators and officials, rather than leaving it to the head executive of Freeport Indonesia. In January 2015, Moffett, then the company’s Executive Chairman, appointed Maroef Sjamsuddin (“Sjamsuddin”), a retired Air Vice Marshal of the Indonesian Air Force and deputy chief of Indonesia’s National Intelligence Agency, to head Freeport Indonesia, despite Sjamsuddin’s lack of experience in mining.
The complaint alleges that throughout the Class Period, the defendants made materially false and misleading statements regarding the company’s business, operational and compliance policies. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (i) Sjamsuddin had discussed, with senior officials in the Indonesian government, bribing Indonesian government officials in return for an extension of Freeport’s right to operate in the country; (ii) that Freeport had violated the Foreign Corrupt Practices Act (“FCPA”); and (iii) as a result of the foregoing, Freeport’s public statements were materially false and misleading at all relevant times.
On November 19, 2015, the Financial Times reported the news, initially reported by the Jakarta Globe, of the Indonesian House of Representatives’ probe into Speaker Setya Novanto’s (“Novanto”) solicitation of bribes from Freeport. Following this news, Freeport stock fell $0.36, or 4.1%, to close at $8.41 on November 19, 2015.
Then, on November 25, 2015, the Indonesian magazine Tempo published an interview with Novanto concerning the probe into Novanto’s dealings with Freeport Indonesia. Concerning his meetings with Sjamsuddin, Novanto stated, in part, that he believed Sjamsuddin had attempted to “blackmail” and “entrap” him. Following this news, Freeport stock fell $0.20, or 2.4%, to close at $8.10 on November 25, 2016.
On December 28, 2015, Moffett resigned from his position as Executive Chairman of Freeport. Following this news, Freeport stock fell $0.72, or 9.5%, to close at $6.85 on December 28, 2015.
Finally, on January 19, 2016, pre-market, Freeport announced the resignation of Sjamsuddin, citing “personal reasons.” Following this news, Freeport stock fell $0.39, or 8.97%, to close at $3.96 on January 19, 2016.
If you are a member of the class described above, you may no later than March 28, 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.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706