NEW YORK, Jan. 09, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against, Tenaris S.A. (“Tenaris” or the “Company”) (NYSE: TS) and certain of its officers. The class action, filed in United States District Court, Eastern District of New York, and indexed under 19-cv-00174, is on behalf of a class consisting of all persons and entities, other than Defendants and their affiliates, who purchased or otherwise, acquired Tenaris securities between May 1, 2014 through November 27, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are a shareholder who purchased Tenaris securities between May 1, 2014, and November 27, 2018, both dates inclusive, you have until February 11, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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Tenaris, a holding of Techint Holdings S.à r.l., was founded in 2001. Tenaris is headquartered in Luxembourg City, Luxembourg, and produces and sells seamless and welded steel tubular products and related services for the oil and gas industry, as well as for other industrial applications.
Paolo Rocca (“Rocca”) is Tenaris’ Chief Executive Officer (“CEO”) and Chairman of the Board (“Chairman). Rocca has also been the Chairman of Ternium S.A. (“Ternium”) since 2005. Ternium is also based in Luxembourg City, Luxembourg, and was formed in 2005 through the consolidation of Siderar of Argentina, Sidor of Venezuela, and Hylsa of Mexico. Ternium, through its subsidiaries, manufactures and processes various steel products in the United States and throughout Latin America. Ternium is Latin America’s leading flat steel producer with an annual crude steel production capacity of 12.4 million tons.
Rocca and Tenaris have a significant investment in Ternium, holding 11.46% of Ternium’s share capital (including treasury shares) as of December 31, 2017.
Siderúrgica de Orinoco C.A. (“Sidor”), of which Ternium held a 59.7% stake, was nationalized by the Venezuelan government in 2008 when Venezuelan President Hugo Chávez signed a decree ordering the renationalization of Sidor.
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding Tenaris’ business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Tenaris’ CEO and Chairman, Rocca, knew one of his company’s executives was involved in a graft scheme whereby government officials were bribed for Defendants’ personal gain, specifically, to expedite compensation payments due from the sale of Ternium’ Sidor unit; (ii) the foregoing conduct foreseeably placed Tenaris, its affiliates, and executives in greater risk of heightened regulatory and criminal scrutiny and investigation, thus depreciating Tenaris’ stock value; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On November 27, 2018, in an article titled “Tenaris Plunges in Italy as Billionaire Chairman Indicted,” Bloomberg reported that Rocca was indicted for his role in a graft scheme.
According to a Reuters from the same date, “[t]he sprawling ‘notebooks’ corruption case, centered on bribes allegedly paid by businesses to secure contracts from the administration of former President Cristina Fernandez, has already ensnared dozens of business owners and politicians.” The article also noted that “Rocca was charged with illicit association and payment of bribes.”
Bloomberg published an article on November 27, 2018, reporting that Rocca wanted to “speed up” the approximate $1.65bn compensation payments due from the Argentine government when it seized Sidor in exchange for Ternium’s 59.7% stake in Sidor. Tenaris was implicated because it has a significant investment in Ternium, and Rocca is Tenaris’ CEO and Chairman of both Tenaris and Ternium.
On this news, Tenaris’ stock fell $2.64 per share, or nearly 10%, to close at $24.36 per share on November 27, 2018, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
CONTACT: Robert S. Willoughby Pomerantz LLP rswilloughby@pomlaw.com 888-476-6529 ext. 9980
