Sadia S.A. faces class action lawsuit in the United States District Court for the Southern District of New York. The lawsuit was filed on behalf of all the purchasers of the company’s American Depository Receipts between April 30, 2008 through September 26, 2008.
The lawsuit charges that Sadia wrongfully represented its exposure to currency futures contracts was much lower than it actually was and that its exposure to currency derivative contracts was “nominal.” However, these contracts violated Company policy because they exceeded internal hedging limits. On September 26, 2008, the Company announced that it would take a loss of approximately $410 million related to the Company’s investments in currency contracts hedging against the U.S. dollar. Sadia acknowledged that the currency contracts had violated its own internal policies. As a result of Defendants’ admissions, Sadia’s ADRs fell 38%.
If you bought Sadia’s ADRs anytime between April 30, 2008 through and including September 26, 2008, and would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact Alan Ellman, Esq. at (800) 321-0476 or (212) 907-0700, or via e-mail at email@example.com.
Plaintiff is represented by the law firm of Labaton Sucharow. Labaton Sucharow is one of the country’s premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts.