PHILADELPHIA, Nov. 20, 2008 (GLOBE NEWSWIRE) -- The law firm of Spector, Roseman Kodroff & Willis, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the Southern District of New York, on behalf of investors who purchased American Depository Receipts ("ADRs") of Sadia S.A. Corporation ("Sadia" or the "Company") (NYSE:SDA) between April 30, 2008 through September 26, 2008, inclusive (the "Class Period").
The complaint alleges that during the Class Period, Sadia entered into undisclosed currency derivative contracts to allegedly hedge against the Company's U.S. Dollar exposure. Specifically, Defendants failed to disclose to investors: (1) that Sadia entered into currency derivative contracts to hedge against U.S. dollar exposure that were twice as large positions allowed for under the Company's hedge policy; (2) that the Company's financial statements were materially false and misleading in that they failed to account for the Company's massive exposure to currency market fluctuations; and (3) that the Company's statements about its financial well-being and future business prospects lacked any reasonable basis when made.
On September 26, 2008, the Company unexpectedly announced that it would take a loss of approximately $410 million related to the Company's investments in currency contracts hedging against the U.S. dollar. Sadia acknowledged that the nature and amounts of these currency contracts fell far outside "the purpose of protecting the activities of the Company exposed to exchange variation." As a result of Defendants' admissions, the Company's ADRs closed at $9.50 per share, down from the previous day's close of $15.27, a decline of 38%.
If you purchased Sadia securities during the Class Period, you may, no later than January 5, 2009, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, which acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Sadia securities during the Class Period, please contact Spector, Roseman Kodroff & Willis, P.C. at classaction@srkw-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time. If you wish to join this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman or David Felderman toll-free at 888-844-5862 or e-mail at classaction@srkw-law.com. For more detailed information about the firm please visit its website at http://www.srkw-law.com.
Spector, Roseman Kodroff & Willis, P.C., with offices in Philadelphia, Pennsylvania and Washington D.C., and affiliated offices around the world, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered through judgments and settlements on behalf of thousands of defrauded shareholders and companies.
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