Friday, July 24, 2015

Faruqi & Faruqi Alert: Centrais Elétricas Brasileiras S.A. - Eletrobras

Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $100,000 Investing In Centrais Elétricas Brasileiras S.A. - Eletrobras To Contact The Firm

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Centrais Elétricas Brasileiras S.A. - Eletrobras (EBR) (“Eletrobras” or the “Company”) (NYSE:EBR) of the September 21, 2015 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of a class consisting of all persons or entities who purchased Eletrobras securities between February 10, 2014 and April 29, 2015.
The complaint claims that the Company and its executives violated federal securities laws by failing to disclose that the Company was subject to investigation and disciplinary action by various Brazilian governmental and regulatory authorities. These proceedings were caused by lack of compliance from certain of the Company’s senior officials with the Company’s corporate governance directives and Code of Ethics. As a result of the foregoing, the Company’s financial statements and SOX certifications signed by Eletrobras’ senior management were materially false and misleading at all relevant times.
Specifically, on April 30, 2015, Eletrobras announced to investors that due to recent news reports about bribery, government investigations, and lack of compliance, the Company would not be filing its Form 20-F on time and needed additional time to make sure the proper auditing procedures were being followed. That same day, Electrobas filed a Form NT-20F with the SEC stating it needed an extension to file its Form 20-F for the year ending December 31, 2014.
On this news, the Company’s ADS price fell $0.22 per ADS, a decline of over 8%, to close at $2.45 per ADS on April 30, 2015.
Take Action
If you invested in Eletrobras stock or options between February 10, 2014 and April 29, 2015 and would like to discuss your legal rights, please contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.comFaruqi & Faruqi, LLP also encourages anyone with information regarding Eletrobras’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

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