Graña y Montero S.A.A. investors may receive additional information about the case by clicking the link "Join this Class Action" above.
Graña y Montero is a Peruvian corporation that provides engineering and construction, infrastructure, real estate, and technical services in Latin America. Odebrecht S.A. (“Odebrecht”) is a global construction conglomerate based in Brazil. Between 2005 and 2011, one of the Graña y Montero’s subsidiaries, GyM S.A., was part of a consortium led by Odebrecht that had a minority stake in the concessions for the Interoceanica Norte and Interoceanica Sur highways.
The Class Period commences on July 24, 2013, when Graña y Montero completed its initial public offering (“IPO”). Graña y Montero sold 22,465,117 ADSs, representing 112,325,585 shares of its common stock, in the IPO for $21.13 per ADS, generating approximately $475 million in gross proceeds.
According to the complaint, on December 21, 2016, the U.S. Department of Justice announced that Odebrecht and Braskem S.A. (“Braskem”), a Brazilian petrochemical company, had pled guilty and agreed to pay a combined total penalty of at least $3.5 billion to resolve charges with U.S., Brazilian and Swiss authorities for paying millions of dollars in bribes to government officials around the world. Graña y Montero had been one of Odebrecht’s most important Peruvian partners, working with it on half a dozen public works contracts worth more than $10 billion. Graña y Montero was also one of Odebrecht’s local partners on two sections of a project to pave a road from the Peruvian Amazon to Brazil. Following this news, the price of Graña y Montero ADSs began to decline, closing down at $5.02 per ADS by January 11, 2017.
Then, on January 12, 2017, Graña y Montero announced that it was withdrawing from its partnership with Odebrecht, calling the partnership a “mistake.” Following this news, the price of Graña y Montero ADSs continued to decline, falling $0.61 per ADS, or 12%, on January 12, 2017.
Finally, on February 24, 2017, a local news magazine, Hildebrandt en sus trece, reported that Graña y Montero knew about $20 million in bribes paid to former President Alejandro Toledo by Odebrecht. Following this news, the price of Graña y Montero’s ADSs fell approximately 35%, or $1.77 per ADS, to close at $3.32 per ADS on February 24, 2017.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (a) from 2005 through at least 2014, Graña y Montero had received millions of dollars in revenues derived from its partnership with Odebrecht; (b) the revenues derived from the company’s partnership with Odebrecht were obtained through violations of both the law and the company’s purportedly strong corporate governance standards; and (c) as a result, the defendants’ statements about Graña y Montero’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you are a member of the class described above, you may no later than April 28, 2017 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 will adequatley 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 nactive class member.
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