Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in BRF (NYSE:BRFS) in connection to alleged violations of securities laws by BRFS. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in BRF from April 4, 2013 until March 2, 2018.
The class action complaint specifically alleges that during the period in question, BRFS might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that the company made bribery payments to politicians and regulatory officials, so as to influence inspections of unsanitary protocols and procedures at its marketing facilities; that if this conduct came to light, it would result in increased regulatory scrutiny on the company, as well as the possibility of prosecution; and that consequently the company’s statements to the public were false and misleading during the relevant period. When news media reported on March 17, 2017, that federal police in Brazil had raided BRF offices in connection to an investigation of bribery allegations, and that the police arrested three BRF employees as well as twenty public officials, the company’s ADR price declined about 7.73%, or $0.99, closing at $11.81 on that day. When the company held a conference call with investors and analysts on February 23, 2018, to discuss Q4 2017 earnings results, and in which they discussed the effects of this operation, the company’s ADR price declined 8%, or $0.76/share, closing at $8.73 on that day. When Reuters reported on March 5, 2018 that BRF’s former Chief Executive Officer had been arrested by federal police in Brazil and charged with fraud in connection to these allegations, the company’s ADR price declined 19.42%, or $1.83, closing at $7.59 on March 5, 2018. The complaint alleges that when true details emerged, investors suffered losses.
According to the company’s website, BRF is a food production company based in Brazil. Its portfolio includes more 30 brands, such as Sadia and Perdigão, Qualy, Danica and Paty. The company produces more than 800 products across 35 productive units and 20 distribution centers. The company trades on the New York Stock Exchange under the symbol BRFS.
A class action lawsuit has already been filed in connection with BRF. If you wish to serve as lead plaintiff in the BRFS lawsuit, you must move the Court no later than May 11, 2018. If you wish to join the litigation, please contact Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.