New York-based Rosen Law Firm filed a class action lawsuit against Argentina’s Loma Negra Compania Industrial Argentina S.A. on behalf of investors that purchased securities in the company’s initial public offering in November 2017. The lawsuit seeks to recover damages under the federal securities laws.
The complaint alleges that the cement producer misled investors in its Registration Statement by: (1) downplaying and misrepresenting Loma Negra’s exposure to a massive, ongoing corruption scandal engulfing its majority owner, InterCement Participações S.A.; (2) misrepresenting a purported increased demand for Loma Negra’s cement and other products as a result of economic growth and government funding for public works projects in Argentina, as well as the purported benefits to Loma Negra from that increased demand; (3) misrepresenting events and trends in the Argentinian economy, as well as Loma Negra’s exposure thereto; and (4) including references to known risks that “if” occurring “might” or “could” affect Loma Negra, despite the fact that these “risks” had already materialized at the time of the IPO.
When the truth of Loma Negra’s misrepresentations and omissions became known, the price of its shares suffered sharp declines. At the commencement of the lawsuit, Loma Negra’s securities were trading more than 40 percent below the $11 IPO price.