Kessler Topaz Meltzer & Check, LLP Announces Investor Securities Fraud Class Action Lawsuit Filed Against Tenaris S.A.
The law firm of Kessler Topaz Meltzer & Check, LLP reminds that an investor securities fraud class action lawsuit has been filed against Tenaris S.A. (NYSE: TS) (“Tenaris”) on behalf of purchasers of Tenaris securities between May 1, 2014 and November 27, 2018, inclusive (the “Class Period”).
Tenaris investors who purchased securities during the Class Period may, no later than February 11, 2019, seek to be appointed as a lead plaintiff representative of the class.
Investors who wish to discuss this securities fraud class action lawsuit or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys James Maro, Jr. or Adrienne Bell at (888) 299-7706 or online at: www.ktmc.com/tenaris-securities-class-action.
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.
Tenaris investors may, no later than February 11, 2019, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a 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 affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.