Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Graña y Montero S.A.A.

First, on December 21, 2016, the U.S. Department of Justice ("DOJ") announced that Odebrecht and another company had pled guilty and agreed to pay a combined total penalty of at least $3.5 billion to resolve charges with U.S., Brazilian and Swiss authorities for paying millions of dollars in bribes to government officials around the world.  According to a criminal information filed the same day by the DOJ and the U.S. Attorney's Office for the Eastern District of New York, which charged Odebrecht with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act ("FCPA"), Odebrecht paid approximately $29 million in bribes to Peruvian government officials to secure public works contracts between 2005 and 2014.  The DOJ complaint alleged that Graña y Montero had been one of Odebrecht's most important Peruvian partners, working with it on half a dozen public works contracts worth more than $10 billion.  The price of the ADSs fell by more than $5 on this news.

Then on January 12, 2017, Graña y Montero announced that it was withdrawing from its partnership with corruption plagued Odebrecht, calling the partnership a "mistake," causing the price of the ADSs to fall another 12%.

Then on January 20, 2017, Reuters announced that "[a] consortium controlled by Brazilian builder Odebrecht S.A. [would] miss a financing deadline . . . for a natural gas pipeline project in Peru" valued at $5 billion in which Graña y Montero owned a 20% interest.

Then on January 25, 2017, citing the loss of the Odebrecht partnership, Graña y Montero disclosed it would ask its Board of Directors to approve the sale of $300 million in assets to help it meet its obligations after losing the Odebrecht partnership as a result of the graft scandal.

Then on February 16, 2017, Reuters reported that an "ombudsman" had "called for prosecutors to investigate Peruvian builder Grana y Montero and other partners of Brazil's construction conglomerate Odebrecht in a corruption probe that has already sunk Grana's shares."

Finally, on February 24, 2017, a local news magazine, Hildebrandt en sus trece, reported that Graña y Montero knew about the $20 million in bribes paid to former President Alejandro Toledo by Odebrecht.  This disclosure caused the price of the ADSs to decline another 35%.

The complaint alleges that as a result of their purchases of Graña y Montero ADSs during the Class Period, members of the Class suffered economic loss, i.e., damages, under the federal securities laws.

Plaintiff seeks to recover damages on behalf of all purchasers of Graña y Montero common stock during the Class Period (the "Class").  The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.

Robbins Geller is widely recognized as one of the leading law firms advising U.S. and international institutional investors in securities litigation and portfolio monitoring.  With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history and was ranked first in both total amount recovered for investors and number of securities class action recoveries in ISS's SCAS Top 50 Report for the last two years.  Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm's clients.  Robbins Geller not only secures recoveries for defrauded investors, it also strives to implement corporate governance reforms, helping to improve the financial markets for investors worldwide.  Please visit www.rgrdlaw.com/cases/granaymontero/ for more information.

https://www.linkedin.com/company/rgrdlaw
https://twitter.com/rgrdlaw
https://www.facebook.com/rgrdlaw
https://plus.google.com/+Rgrdlaw/posts

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/robbins-geller-rudman--dowd-llp-files-class-action-suit-against-grana-y-montero-saa-300428884.html

SOURCE Robbins Geller Rudman & Dowd LLP