Loma Negra Compañía Industrial Argentina Sociedad Anónima ( LOMA ) Accused of Downplaying Major Risks Faced by the Company
According to a filed class action complaint against Loma Negra Compañía Industrial Argentina Sociedad Anónima ( LOMA ) officers and directors for alleged violations of the Securities Act of 1933 pursuant to Loma’s November 2017 initial public offering (“IPO”)., Loma failed to disclose that the Argentine economy was slowing down and the related infrastructure projects—upon which Loma heavily depended—would be the first to be cut by the government. The truth did not begin to emerge until well after the IPO when, on May 13, 2018, UBS AG analysts double downgraded the company’s ADSs to “sell” from “buy.” The analysts also dropped the twelve-month price target from $26.50 to $14.50, citing macroeconomic headwinds related to the economic climate in Argentina and cuts by the Argentinian government to infrastructure spending. On May 23, 2018, news began swirling in the media that Argentina’s National Commission of Competition Defense was investigating Argentina’s cement companies for price-fixing. Loma’s ADS price has plummeted over 35% from its IPO price, closing at $12.21 on June 26, 2018.
Loma Negra Compañía Industrial Argentina Sociedad Anónima ( LOMA ) Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can send us a message via the
Shareholder Information form below.