Atanasio v. Tenaris S.A. et al 1:18-cv-07059 — On December 12, 2018, investors sued Tenaris S.A. (“Tenaris” or the “Company”) in United States District Court, Eastern District of New York. The TS class action alleges that the plaintiffs acquired Tenaris stock at artificially inflated prices between May 1, 2014 and November 27, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. For more information on the Tenaris Lawsuit (TS Lawsuit), please contact us today!
Summary of the Allegations
According to its website, Tenaris (NYSE: TS) is “a leading supplier of tubes and related services for the world’s energy industry and certain other industrial applications.”
The Company says its customers are some “of the world’s leading oil and gas companies as well as engineering companies engaged in constructing oil and gas gathering, transportation and processing facilities.” Its core products include casing, tubing, line pipe, and mechanical and structural pipes.
In all, Tenaris has manufacturing facilities in 16 countries and research and development facilities on four continents. It also has service and distribution centers is more than 25 countries.
The Company’s history dates to 1948, when Siderca was established in Argentina. Tenaris expanded its Argentine operations in the 1980s and gradually grew into a global business “through a series of strategic investments.”
According to the December 12 complaint, Tenaris has a “significant investment in Ternium S.A.” Specifically, the Company held more than 11% of Ternium’s share capital (including treasury shares) as of December 31, 2017.
As also set forth in the December 12 complaint, the 2005 consolidation of Siderar of Argentina, Sidor of Venezuela and Hylsa of Mexico resulted in the creation of Ternium. However, Venezuela ordered the transformation of Sidor, a Venezuelan steel company, into a state-owned enterprise in 2008.
Finally, on May 7 2009, Ternium sold its majority stake (59.7%) in Sidor to Corporación Venezolana de Guayana, or CVG, “a Venezuelan state-owned entity.” Although Ternium accepted $1.97 billion USD for the sale of its interest, it took several years to get the money.
Summary of Facts
Tenaris and two of its senior officers and/or directors (the “Individual Defendants”) are now accused of deceiving investors by lying and withholding critical information about the Company’s business practices during the Class Period.
Specifically, they are accused of omitting truthful information about a certain executive’s conduct and ancillary issues from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Tenaris stock to trade at artificially inflated prices during the time in question.
The truth came in a report published by Bloomberg on November 27, 2018. In it, Bloomberg revealed that Tenaris Chairman and CEO Paolo Rocca (one of the Individual Defendants named in the December 12 complaint) “was indicted for his role in a graft scheme.”
A closer look…
As alleged in the December 12 complaint, the Company and/or Individual Defendants repeatedly made false and misleading public statements during the Class Period.
For example, on a form filed with the SEC at the beginning of the Class Period, the Company stated that it was: “committed to conducting business in a legal and ethical manner in compliance with local and international statutory requirements and standards.”
On another form filed with the SEC on June 1, 2015, the Company referred to its Code of Ethics and Code of Conduct, stating in pertinent part:
“In addition to the general code of conduct incorporating guidelines and standards of integrity and transparency applicable to all of our directors, officers and employees, we have adopted a code of ethics for financial officers which applies to our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions and is intended to supplement the Company’s Code of Conduct.”
Impact of the Alleged Fraud on Tenaris’s Stock Price and Market Capitalization
|Closing stock price prior to disclosures:
|Closing stock price the trading day after disclosures:
|One day stock price decrease (percentage) as a result of disclosures:
The following chart illustrates the stock price during the class period:
Actions You May Take
If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.
NOTE: The deadline to file for lead plaintiff in this class action is February 11, 2019. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.
In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Tenaris common stock using court approved loss calculation methods.
Recently Filed Cases
Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action. Please contact us if you would like an LK report for any of these cases:
Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse. With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.
Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients. Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.