NEW YORK, Nov. 26, 2008 (GLOBE NEWSWIRE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") has filed a class action lawsuit in the United States District Court, Southern District of New York, against Sadia S.A. ("Sadia" or the "Company") (NYSE:SDA) (Sao Paolo:SDIA3.SA) and certain officers of the company. The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the SEC. The class action, captioned Radzik v. Sadia S.A. et al., Civil Action No. 08-CV-9930 (S.D.N.Y.), was filed on behalf of those investors who purchased the Company's American Depository Receipts ("ADRs") between April 30, 2008 and September 26, 2008 ("Class Period").
Sadia is a major Brazilian food and beverages company whose principal activities include production, distribution, exporting and marketing of refrigerated and frozen food products. The complaint alleges that during the Class Period, Sadia entered into undisclosed currency derivative contracts to purportedly hedge against the Company's U.S. Dollar exposure. Specifically, Defendants failed to disclose or indicate (1) that Sadia entered into currency derivative contracts to hedge against U.S. dollar exposure that were entirely imprudent and twice as large positions called for by 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, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.
On September 26, 2008, the Company 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 or acquired the securities of Sadia during the Class Period, you have until January 5, 2009 to ask the Court to appoint you as lead plaintiff for the class. Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may join the action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago, Washington, D.C., Columbus, Ohio and the San Francisco Bay area, 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.