Date: January 13, 2012
Source: Pomerantz Haudek Grossman & Gross LLP
In a recently filed class action lawsuit, Veolia Environnement and several of its key executives are accused of having violated federal securities laws by making false and misleading statements about the company's internal controls, business fundamentals and financial guidance. The law firm Pomerantz Haudek Grossman & Gross LLP filed the complaint in the United States District Court, Southern District of New York on behalf of investors who purchased American Depositary Shares of Veolia between April 27, 2007, and Aug. 3, 2011. According to the complaint, Veolia was "materially overstating its financial results by engaging in improper accounting practices" and that "the company failed to timely record an impairment charge for its transport business in Morocco, environmental services in Egypt, marine services in the United States, and for southern Europe."
According to the complaint, the company also "lacked adequate internal and financial controls" and made statements that "were materially false and misleading at all relevant times." In response, Veolia said it "considers that any allegation that its financial communications may have been misleading is without merit, and the company intends to seek the dismissal of the complaint," according to a company statement. Last year however, in reporting income that had declined to 252.2 million euros from 1,100.7 million euros a year earlier, the company disclosed "nonrecurring writedowns of 686 million euros (principally in Italy, Morocco and the United States" and said it had identified accounting fraud in its marine services business, where earnings for periods from 2007 to 2010 were inflated by at least 152 million euros.
See also: "Firms Charge Veolia with Violating Securities Laws," (www.wasteinfo.com/news/wbj20120104G.htm).
PRESS RELEASE
January 13, 2012
Pomerantz Law Firm Has Filed a Class Action Against Veolia Environnement S.A. -- VE
Pomerantz Haudek Grossman & Gross LLP has filed a federal securities class action (12 Civ. 0312) in the United States District Court, Southern District of New York, on behalf of all persons who purchased American Depositary Shares ("ADS") of Veolia Environnement S.A ("Veolia" or the "Company") between April 27, 2007 and August 3, 2011 inclusive (the "Class Period"). This class action is brought under the Securities Exchange Act of 1934 and Rule 10b-5 against the Company and certain of its top officials.
If you are a shareholder who purchased Veolia securities during the Class Period, you have until February 27, 2012 to ask the Court to appoint you as lead plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x350. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
Veolia operates utility and public transportation businesses. The Company supplies drinking water, provides waste management services, manages and maintains heating and air conditioning systems, and operates rail and road passenger transportation systems.
The Complaint alleges that throughout the Class Period Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company was materially overstating its financial results by engaging in improper accounting practices; (2) the Company failed to timely record an impairment charge for its Transport business in Morocco, Environmental Services businesses in Egypt, Marine Services business in the United States, and for Southern Europe; (3) the Company's revenues were being adversely affected by the renewal of some of its major concession contracts; (4) the Company lacked adequate internal and financial controls; and (5) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On August 4, 2011, the Company announced financial results for the period ended June 30, 2011. In addition, the Company reported operating income of EURO252.2 million, compared to EURO1,100.7 million in the prior year for the same period, due to "non-recurring write-downs amounting to EURO686M (principally in Italy, Morocco and the United States)." Further, the Company disclosed that it had identified accounting fraud in its Marine Services business whereby earnings for periods from 2007 through 2010 were inflated by at least EURO152 million.
On these revelations, Veolia ADS declined $4.66 or more than 22%, to close at $16.10 on August 4, 2011.
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, contact:
Rachelle R. Boyle
Pomerantz Haudek Grossman & Gross LLP
rrboyle@pomlaw.com.
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