Tenaris investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Tenaris produces and sells seamless and welded steel tubular products and related services for the oil and gas industry and other industrial applications. Tenaris has a significant investment in Ternium S.A and, as of December 31, 2017, held 11.46% of Ternium’s share capital (including treasury shares). Ternium was created in 2005 by the consolidation of Siderar of Argentina, Sidor of Venezuela, and Hylsa of Mexico. In 2008, Venezuela ordered the transformation of Sidor, a Venezuelan steel company, into a state-owned enterprise. On May 7, 2009, Ternium sold its 59.7% stake in Sidor to Corporación Venezolana de Guayana, a Venezuelan state-owned entity. Ternium agreed to receive $1.97 billion for the sale of its interest. It took several years, from 2009 to 2012, for Ternium to receive the money.
The Class Period commences on May 1, 2014. On April 30, 2014, after market hours, Tenaris filed a Form 20-F for the fiscal year ended December 31, 2013 with the SEC, which provided Tenaris’ year-end financial results and position. The Form 20-F stated that Tenaris was “committed to conducting business in a legal and ethical manner in compliance with local and international statutory requirements and standards.”
According to the complaint, on November 27, 2018, Bloomberg reported that Paolo Rocca, who served as Tenaris’ Chairman and Chief Executive Officer (“CEO”) throughout the Class Period, was indicted for his role in a graft scheme. Specifically, the article stated that an Argentine judge indicted Mr. Rocca after he testified that one of his company’s executives paid an undisclosed amount of cash to government officials in monthly installments from 2009 to 2012 to speed up a compensation payment from Venezuela’s Hugo Chavez for the nationalization of Sidor.
Following this news, Tenaris’ stock fell $2.64 per share, or nearly 10%, to close at $24.36 per share on November 27, 2018.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Tenaris’ CEO and Chairman, Paolo Rocca, knew that one of his company’s executives paid cash to government officials from 2009 to 2012 to speed up compensation payments for the sale of Sidor; (2) this conduct would lead to Mr. Rocca being charged in a graft scheme, and subject Tenaris, its affiliates, and/or executives to heightened governmental scrutiny; and (3) as a result, Tenaris’ public statements were materially false and/or misleading at all relevant times.
If you are a member of the class described above, you may no later than February 11, 2019 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 email@example.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
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Radnor, PA 19087
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