Date: December 29, 2011
Source: Pomerantz Haudek Grossman & Gross LLP
A pair of law firms said they were investigating whether Veolia Environnement and several of its key executives violated federal securities laws by making false and misleading statements concerning Veolia's internal controls, business fundamentals and financial guidance. The French water and waste giant, the world's largest environmental utility in terms of revenue, operates utility and public transportation businesses that supply drinking water, provide waste management services, manage and maintain heating and air conditioning systems, and operate rail and road passenger transportation systems.
The alleged violations include management's overstating Veolia's financial results through improper accounting practices; lacking adequate internal controls to determine its financial condition; failing to record various impairment charges in a timely manner and; failing to disclose a decline in revenue from the renewal of some of its major concession contracts. As a result, they say the defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
PRESS RELEASE
December 29, 2011
Pomerantz Law Firm Investigates Claims on Behalf of Investors of Veolia Environnement S.A.
Pomerantz Haudek Grossman & Gross LLP is investigating claims on behalf of investors of Veolia Environnement S.A. ("Veolia" or the "Company") who purchased Veolia American Depositary Shares ("ADSs") during the period between April 27, 2007 and August 4, 2011. Such investors are advised to contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888-476-6529, ext. 350.
The investigation concerns whether Veolia and several of its key executives violated federal securities laws by making false and misleading statements concerning Veolia's internal controls, business fundamentals and financial guidance.
Veolia runs utility and public transportation businesses that supply drinking water, provide waste management services, manage and maintain heating and air conditioning systems, and operate rail and road passenger transportation systems.
The alleged violations by defendants include (1) materially overstating Veolia's financial results by engaging in improper accounting practices; (2) lacking adequate internal controls to ascertain the Company's true financial condition; (3) failing to timely record an impairment charge for Veolia's Transport business in Morocco, Environmental Services businesses in Egypt, Marine Services business in the United States, and for Southern Europe; (4) failing to disclose that the Company's revenues were being hampered by the renewal of some of its major concession contracts; (5) and that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
Veolia announced its half-year results for the period ended June 30, 2011 on August 4, 2011, reporting consolidated revenue for that half year of €16,286.7 million. Defendants also reported operating income of €252.2 million, down from €1100.7 million in the prior year period, due to "non-recurring write-downs amounting to €686M (principally in Italy, Morocco and the United States)." The Company further stated that it would exit certain businesses and certain geographies, including its Transport business in Morocco, Environmental Services businesses in Egypt, Marine Services business in the United States and in Southern Europe. In reaction to these announcements, the price of Veolia ADSs dropped $4.66 per share, or over 22%, to close at $16.10 per share.
The Pomerantz Firm, with offices in New York, Chicago, and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
For more information:
Rachelle R. Boyle
Pomerantz Haudek Grossman & Gross LLP
rrboyle@pomlaw.com.
PRESS RELEASE
December 29, 2011
Faruqi & Faruqi, LLP Announces Investigation of Veolia Environnement S.A.
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at Veolia Environnement S.A. ("Veolia" or the "Company") (NYSE: VE).
The investigation seeks to determine whether the Company and its executives violated federal securities laws by misrepresenting and/or failing to disclose: (a) that Veolia was materially overstating its financial results by engaging in improper accounting practices; (b) that Veolia failed to timely record an impairment charge for its Transport business in Morocco, Environmental Services businesses in Egypt, and Marine Services business in the United States and for Southern Europe; (c) that the Company's revenues were being hampered by the renewal of some of its major concession contracts; and (d) that Veolia lacked a reasonable basis for their positive statements about the Company and its prospects.
On August 4, 2011, Veolia reported consolidated financial results for the half year ended June 30, 2011. Veolia reported operating income of 252.2 million euros, compared to 1100.7 million euros in the prior year period, due to "non-recurring write-downs amounting to 686 million euros." The Company stated that it would exit certain businesses, including its Transport business, Environmental Services, and Marine Services business. Based on this news, Veolia American Depository Shares fell $4.66 per share, or over 22%, to close at $16.10 per share.
Take Action
If you purchased Veolia securities and you would like to discuss your legal rights, visit www.faruqilaw.com/VE. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com or fmcconville@faruqilaw.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding Veolia's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential matter.
For more information, contact:
FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com.
Francis McConville, Esq.
fmcconville@faruqilaw.com.
Telephone: (877) 247-4292 or (212) 983-9330
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