The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Embraer paid bribes to Dominican Republic officials to secure contracts for aircraft sales; (2) Embraer's President and Chief Executive Officer ("CEO"), Defendant Frederico Pinheiro Fleury Curado ("Curado") had knowledge of the bribe; (3) the predictable consequences of this misconduct would cost Embraer hundreds of millions of dollars; and (4) consequently, Defendants' statements about Embraer's business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On November 1, 2013, post-market, The Wall Street Journal published an article explaining that Embraer was under investigation by the U.S. and Brazilian governments regarding a bribery scheme with Dominican Republic officials to close a deal for military aircrafts. Following this news, Embraer's ADRs dropped $0.17 per share, or 0.57%, to close at $29.55 on (the next trading day,) November 4, 2013.
On September 23, 2014, The Wall Street Journal published how the Brazilian authorities filed a criminal complaint with charges of bribery against an Embraer sales consultant and eight former Ebraer executives and directors for Embraer, which had seemingly been done with the approval of Embraer's top management. The charges were based on evidence provided by U.S. authorities, who had been investigating Embraer possible violations of the U.S. Foreign Corrupt Practices Act ("FCPA") since 2010. Embraer had bribed Dominican Republic officials to secure a $92 million contract. Following this news, Embraer's ADRs dropped $0.26 per share, or 0.68%, to close at $38.25 on September 24, 2014.
On March 16, 2016, post-market, several news sources reported that sales consultant Elio Moti Sonnenfeld, who allegedly paid bribes for Embraer, told Brazilian authorities that he believed Embraer's top managers, including Defendant Curado, knew of the criminal 'imbursements' that were paid for the Dominican Republic sales.
On June 9, 2016, post-market, Embraer announced that Embraer stated that its Chief Executive Officer Frederico Curado would be stepping down after 32 years with the Company, and that Paulo César de Souza e Silva would fill the position. Following this news, Embraer's ADRs dropped $1.18 per share, or 5.44%, to close at $20.51 on June 10, 2016.
Later, on July 29, 2016, Embraer filed a Form 6-K with the SEC and stated in part: "[N]egotiations with the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) for the settlement of the allegations of non-compliance with the U.S. Foreign Corrupt Practices Act (FCPA) have significantly progressed, to the point that Embraer is recognizing a US$ 200 million loss contingency in the quarter ended June 30, 2016.
The Company also released its quarterly financial report, showing a loss of $99.4 million, or $0.55 per share, after setting aside $200 million in connection with the U.S. FCPA probe. Following this news, Embraer's ADRs dropped $2.93 per share, or 13.82%, to close at $18.27 on July 29, 2016.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint or join the action, please visit the firm's site: http://www.bgandg.com/erj. To discuss this action, or for any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email email@example.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Embraer you have until October 7, 2016 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.
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.
Bronstein, Gewirtz & Grossman, LLC
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