Investor Lawyers Blog
In the United States District Court for the Southern District Court of New York, a class action has been filed against Veolia Environment S.A. on behalf of its purchasers. The class action is regarding American Depositary Shares (ADSs) for the Class Period of April 27, 2007 through August 4, 2011. Veolia Environment S.A. allegedly violated federal securities laws.
According to the complaint, Veolia failed to disclose and/or misrepresented the following facts:
• The company was engaging in improper accounting practices and as a result materially overstated its financial results.
• Veolia could not determine its true financial condition as a result of its inadequate internal controls.
• The company did not record, in a timely manner, an impairment charge for its marine services business in the United States and Southern Europe, environmental services business in Egypt and transport business in Morocco.
• The renewal of some major concession contracts was hampering the company’s revenues.
When the company’s half-year results were announced on August 4, 2011, for the period ending June 30th of that year, Veolia American Depository Shares fell by 22 percent, or $4.66 per share as a result. The shares closed at $16.10 per share. The half-year results showed a consolidated revenue of EUR 16,286.7 million. In addition, defendants reported the operating income for Veolia to be EUR 252.2 million, a significant decline compared to the prior year which had an operating income of EUR 1,100.7 million. The change was due to “non-recurring write-downs amounting to EUR 686M (principally in Italy, Morocco and the United States).” Veolia also stated that it would exit businesses and geographies including for its marine services business in the United States and Southern Europe, environmental services business in Egypt and transport business in Morocco.
If you invested with Veolia Environment S.A. for the Class Period of April 27, 2007 through August 4, 2011, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact an investment attorney at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.