Robbins LLP: Graña y Montero S.A.A. (GRAM) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Graña y Montero S.A.A. (NYSE: GRAM) in the U.S. District Court for the Eastern District of New York. The complaint is brought on behalf of all persons or entities who purchased or acquired Graña American Depositary Shares between April 30, 2014 and February 24, 2017, for alleged violations of the Securities Exchange Act of 1934 by Graña’s officers and directors. Graña, together with its subsidiaries, provides engineering and construction, infrastructure, real estate, and technical services in Latin America.
Graña Accused of Hiding Bribes to Secure Contracts
According to the complaint, in a series of filings with the U.S. Securities and Exchange Commission, Graña officials attested to the accuracy of its financial reporting, the disclosure of any material changes to the company’s internal controls over financial reporting, and the disclosure of all fraud. In addition, the company’s Forms 20-F for the fiscal years 2013, 2014, and 2015 stated that the company abides by the highest corporate governance standards in Peru. However, the complaint alleges that Graña officials failed to disclose that the company was aware that its Brazilian partner Odebrecht SA paid bribes to former Peruvian President Alejandro Toledo to win construction work on a road traveling from Peru to Brazil.
On February 24, 2017, Reuters published an article highlighting a report that the company knew about $20 million in bribes paid by Odebrecht, which is involved in a massive corruption scandal concerning a dozen countries, to Toledo. According to the article, Jorge Barata, the former head of Odebrecht Peru, stated that the firm’s junior partners on a highway project were aware of an agreement to bribe Toledo in exchange for help securing the contracts. Graña and two other local companies purportedly helped Odebrecht build two sections of a road from the Peruvian Amazon to Brazil. On this news, Graña’s stock price fell $1.77 per share, or over 34%, to close at $3.32 per share on February 24, 2017.
Graña 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.