NEW YORK, March 13, 2018 /PRNewswire/ — Attorney Advertising — Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against BRF S.A. (“BRF ” or the “Company”) (NYSE: BRFS) and certain of its officers, on behalf of shareholders who purchased or otherwise acquired BRF American Depositary Receipts (“ADRs”) between April 4, 2013 and March 2, 2018, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: http://www.bgandg.com/brfs.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The complaint alleges that throughout the class period, defendants made false and misleading statements and/or failed to disclose to investors that: (1) BRF employees paid bribes to regulators and politicians to subvert inspections in order to conceal unsanitary practices at the Company’s meatpacking plants; (2) the above mentioned conduct, when it came to light, would foreseeably subject the Company and its officers to heightened regulatory enforcement and/or prosecution; and (3) as a result of the foregoing, BRF’s public statements were materially false and misleading at all relevant times.
On March 17, 2017, news outlets reported that Brazilian federal police had raided the offices of BRF and dozens of other meatpackers following a two-year investigation into alleged bribery of regulators to subvert inspections of their plants. The probe, known as “Operation Weak Flesh”, had uncovered some 40 cases of meatpackers who had bribed inspectors and politicians to overlook unsanitary practices, such as processing rotten meat and running plants with traces of salmonella. According to media reports, police found evidence that the companies were tampering with packages to sell products that had already expired and that higher-than permitted levels of parts such as “pig heads” were mixed with sausages and cold cuts. Police arrested three BRF employees, as well as 20 public officials. On this news, BRF’s ADR price fell $0.99, or 7.73%, to close at $11.81 on March 17, 2017.
On February 23, 2018, the Company held an earnings conference call with investors and analysts to discuss the Q4 2017 earnings results. In the call, Chairman of the Board Abilio Diniz and CFO Lorival Luz discussed the impact of “Operation Weak Flesh.” On this news, BRF’s ADR price fell $0.76, or 8.00%, to close at $8.73 on February 23, 2018.
On March 5, 2018, Reuters reported that Brazilian federal police arrested BRF’s former Chief Executive Officer (“CEO”) Pedro de Andrade Faria (“Faria”) on charges that he and other executives, including the Company’s Vice President of Global Operations Hélio dos Santos Júnior, were aware that BRF committed fraud by trying to avoid food safety checks. According to the report, the “police cited evidence that five laboratories accredited by the Agriculture Ministry colluded with the analysis department of BRF to “falsify” test results related to the safety of its industrial process.” In a court ruling authorizing the arrests, Brazilian federal judge André Duszczak said “Faria and other BRF officers sought to cover up claims of possible food contamination, as shown in certain laboratory tests, made by a former employee in a labor lawsuit.” On this news, BRF’s ADR price fell $1.83 or 19.42% to close at $7.59 on March 5, 2018.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: http://www.bgandg.com/brfs or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in BRF you have until May 11, 2018 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
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Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | [email protected]
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