BOSTON, Aug. 11, 2015 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible securities law violations by Abengoa SA ("Abengoa" or the "Company") (NASDAQ: ABGB) and its officers and directors. The investigation follows recent announcements regarding the Company's participation in the capital markets.
First, on July 31, 2015, Abengoa announced that it was lowering its free cash flow guidance and planned to divest itself of approximately 400 million euros in assets, despite recent announcements that "our business model is all set to enhance our free cash flow". On July 31, 2015, Company CEO Santiago Seage, stated that although the Company had issued the reduced guidance, Abengoa "has no plan to tap the capital markets in any manner".
Just days later, on August 3, 2015, the Company reversed course and announced a share issuance plan for 650 million euros, and increased the asset divestiture to 500 million euros. In addition to contradicting the CEO's announcement of three days' prior, it seemed to call into question Abengoa's May 2015 representations that it had at least 400 million of undrawn working capital lines.
Following the July 31 and August 3, 2015 announcements, an August 11, 2015 Bloomberg report announced that Abengoa's top shareholder, Inversion Corporativa, holder of 57.5% of the Company, had pledged 28.2 million Class A Abengoa shares and 115.6 million Class B Abengoa shares to banks as guarantees for loans. A substantial portion of these pledges, 16.9 million Class A and 83 million Class B shares, are guarantees for debt taken by an Inversion subsidiary.
As of mid-day trading on August 11, 2015, the July and August announcements accompanied a drop of approximately 48% of the Company's stock market price.
Block & Leviton's investigation seeks to determine whether Abengoa or its officers and directors violated the federal securities laws through the Company's actions and disclosures. If you purchased or otherwise acquired Abengoa securities prior to August 3, 2015, and have questions about your legal rights or possess information relevant to this investigation, please contact attorney Steven P. Harte of Block & Leviton LLP at (617) 398-5600 or email him at Steven@blockesq.com. Confidentiality to whistleblowers or others with information relevant to the lawsuit is assured.
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Contact: BLOCK & LEVITON LLP
Steven P. Harte, Esq.
SOURCE Block & Leviton LLP