NEW YORK, NY–(Marketwire -12/30/11)- Attorney Advertising — Bronstein, Gewirtz & Grossman, LLC announces that a class action has been filed in the United States District Court for the Southern District Court of New York on behalf of purchasers of Veolia Environment S.A. (“Veolia” or “the Company”) (NYSE: VE – News) American Depositary Shares (“ADSs”) during the period between April 27, 2007 and August 4, 2011 (the “Class Period”) for violations of federal securities laws.
The complaint alleges that, during the Class Period, the Company and its executives violated federal securities laws by misrepresenting and/or failing to disclose: (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.
On August 4, 2011, Veolia announced its half year results, for the period ended June 30, 2011. The Company reported for the half year consolidated revenue of EUR 16,286.7 million. Moreover, defendants reported operating income of EUR 252.2 million, compared to EUR 1100.7 million in the prior year period, due to “non-recurring write-downs amounting to EUR 686M (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. Based on this news, Veolia American Depository Shares fell $ 4.66 per share, or over 22%, to close at $ 16.10 per share.
No Class has yet been certified in the above action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact either Peretz Bronstein or Eitan Kimelman of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email [email protected]. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. February 27, 2012 is the deadline for investors to seek a lead plaintiff appointment.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of both class and individual litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate work, litigation and securities arbitration.