Robbins LLP: G. Willi-Food Corporation (WILC) Misled Shareholders According to a Recently Filed Class Action
March 4, 2016 (San Diego, CA & Yavne, Israel) – Shareholder rights law firm Robbins LLP announces that a class action complaint was filed against G. Willi-Food Corporation (NASDAQCM: WILC) in the U.S. District Court for the Southern District of New York. The plaintiff brings the complaint on behalf of all purchasers of G. Willi-Food securities between April 30, 2014 and February 18, 2016, for the alleged violations of the Securities Act of 1934 by G. Willi-Food’s officers and directors. G. Willi-Food develops, imports, exports, markets, and distributes various food products worldwide.
G. Willi-Food Accused of Engaging in Fraud and Money Laundering
According to the complaint, from 2013 through 2015, G. Willi-Food filed several Form 20-Fs and Form 6-Ks with the U.S. Securities and Exchange Commission attesting to the accuracy of the financial reporting, effectiveness of internal controls, and that all fraud was disclosed. The company detailed its Code of Ethics, which promotes honest and ethical conduct, proper disclosure of information in the corporation’s periodic reports, and compliance with governmental laws and regulations. On July 16, 2015, the company announced that its director sold his controlling interest in the company to Gregory Gurtovoy, who was appointed Co-Chairman of the Board of Directors not long after. The complaint alleges, however, that the company failed to disclose that Gurtovoy, along with others, illegally transferred money out of G. Willi-Food.
On February 17 and 18, 2016, several news articles revealed that Israeli authorities had been conducting an undercover investigation of Gurtovoy and that he was arrested on suspicion of aggravated fraud, money laundering, financial reporting violations, and false reporting. The articles further detailed that Gurtovoy was suspected of taking money out of Willi-Food and investing it in assets abroad. On February 18, 2016, G. Willi-Food issued a press release confirming these reports. On this news, G. Willi-Food stock fell $0.20 per share, or approximately 5%, to close at $3.75 per share on February 18, 2016, when NASDAQ halted trading in G. Willi-Food for “additional information requested” from the company.
G. Willi-Food Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.