Veolia Environnement : Rigrodsky & Long, P.A. Announces a Securities Fraud Class Action Lawsuit Has Been Filed Against Veolia Environnement, S.A. for Violations of the Federal Securities Laws
12/29/2011 | 06:20pm
Rigrodsky
& Long, P.A. announces that a class action lawsuit has been
filed in the United States District Court for the Southern District of
New York on behalf of the purchasers of the American Depository Shares
("ADSs") of Veolia Environnement ("Veolia" or the "Company") (NYSE: VE),
during the period April 27, 2007 through August 4, 2011, inclusive (the
"Class Period"), alleging violations of the Securities Exchange Act of
1934 (the "Complaint").
Click here to learn more: http://investigations.rigrodskylong.com/veolia-environnement-sa-ve/.
The complaint charges Veolia and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. Veolia, together
with its subsidiaries, provides environmental management services to
individuals, public authorities, and industrial and commercial services
customers worldwide.
The Complaint alleges, that throughout the Class Period, Veolia issued
false and misleading financial statements that were not prepared in
accordance with Generally Accepted Accounting Principles ("GAAP").
Specifically, it is alleged that the Company failed to timely record
impairments to its goodwill and improperly overstated the operating
results for its Marine Services business during the Class Period.
Indeed, the Company admitted that its previous financial reports for
fiscal years 2007-2010 were materially false and misleading and, because
of fraud in its Marine Services business, overstated by at least ?90
million.
In addition, Veolia failed to timely record an impairment charge for its
Transport business unit in Morocco, its Environmental Services business
in Egypt, and its Marine Services business in the United States and in
Southern Europe. Veolia's revenues were also being hampered by the
renewal of some of its major concession contracts. The foregoing shows
that Veolia lacked adequate internal controls, and therefore defendants
were unable to ascertain the Company's true value, and that defendants
lacked a reasonable basis for their positive statements about Veolia and
its business prospects.
On August 4, 2011, Veolia announced its half year results, for the
period ended June 30, 2011, reporting consolidated revenue of ?16,286.7
million, and operating income of ?252.2 million, compared to ?1100.7
million in the prior year period, due to "non-recurring write-downs
amounting to ?686M (principally in Italy, Morocco and the United
States)." The Company also stated that it would exit certain businesses
and certain geographies, including its Transport business in Morocco, it
Environmental Services business in Egypt, and its Marine Services
business in the United States and in Southern Europe.
In reaction to these announcements, the price of Veolia ADSs fell $4.66
per share, or over 22%, from a close of $20.76 per share on August 3,
2011 (prior to the announcement), to close at $16.10 per share, on
August 4, 2011 (the day of the announcement) on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later
than February 27, 2012. A lead plaintiff is a representative party
acting on behalf of other class members in directing the litigation. In
order to be appointed lead plaintiff, the Court must determine that the
class member's claim is typical of the claims of other class members,
and that the class member will adequately represent the class. Your
ability to share in any recovery is not, however, affected by the
decision whether or not to serve as a lead plaintiff. Any member of the
proposed class may move the court to serve as lead plaintiff through
counsel of their choice, or may choose to do nothing and remain an
absent class member.
While Rigrodsky
& Long, P.A. did not file the Complaint in this matter, the
firm, with offices in Wilmington, Delaware and Garden City, New York, regularly
litigates securities class, derivative and direct actions, shareholder
rights litigation and corporate governance litigation, including
claims for breach of fiduciary duty and proxy violations in the Delaware
Court of Chancery and in state and federal courts throughout the United
States.
Attorney advertising. Prior results do not guarantee a similar outcome.
Rigrodsky & Long, P.A.
Timothy J. MacFall, Esquire
Noah R.
Wortman, Case Development Director
888-969-4242
302-295-5310
Fax:
302-654-9430
info@rigrodskylong.com
http://www.rigrodskylong.com
© Business Wire 2011
