CASES
Veolia Environnement S.A.
Class Period: Apr 27, 2007 to Aug 4, 2011
Lead Plaintiff Deadline: Feb 25, 2012
Summary of Case:
A securities class action has been filed against Veolia Environnement S.A. ("Veolia" or the "Company") on behalf of all persons or entities who purchased the American Depository Shares ("ADSs") Veolia between April 27, 2007 and August 4, 2011. This case has been filed in the USDC - New York (Southern).
The complaint alleges that, during the Class Period, Defendants issued materially false and misleading statements regarding the Company's business and prospects. Specifically, Defendants misrepresented and/or failed to disclose the following adverse facts: (a) that Veolia was materially overstating its financial results by engaging in improper accounting practices; (b) that the Company lacked adequate internal controls and was therefore unable to ascertain its true financial condition; (c) that Veolia failed to timely record an impairment charge for its Transport business in Morocco, Environmental Services businesses in Egypt, Marine Services business in the United States, and for Southern Europe; (d) that the Company's revenues were being hampered by the renewal of some of its major concession contracts; and (e) that, as a result of the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
On August 4, 2011, Veolia announced its half year results, for the period ended June 30, 2011. For the half year, the Company reported consolidated revenue of 16,286.7 million euros. Moreover, Defendants reported operating income of 252.2 million euros, compared to 1100.7 million euros in the prior year period, due to "non-recurring write-downs amounting to 686 million euros (principally in Italy, Morocco and the United States)." The Company stated that it would exit certain businesses and certain geographies, including its Transport business in Morocco, Environmental Services businesses in Egypt, 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%, to close at $16.10 per share, on heavy trading volume.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.