Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against Abengoa, S.A.


NEW YORK, Aug. 17, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased Abengoa, S.A.  (“Abengoa” or the “Company”) (Nasdaq:ABGB) securities during the period between May 5, 2014 and August 3, 2015, inclusive (the “Class Period”).  The Complaint charges the Company and certain of its officers and directors with violations of the Securities Exchange Act of 1934.

The Complaint alleges that the Company and certain of its former and current executive officers and directors have misrepresented the liquidity of the Company’s balance sheet.  On July 31, 2015, the Company announced it would lower its free cash flow guidance and a plan to divest itself of 400 million euros in assets.  Despite this statement, CEO Santiago Seage Medela maintained that “the company has no plan to . . . tap the capital markets in any manner.”  Then on August 3, 2015, contrary to this statement, the Company announced a share issuance plan to raise 650 million euros, along with an asset divestiture totaling 500 million euros.

When the market digested this news, the Company’s securities plunged over $5 per share, or 46%, to close at $6.00 on August 4, 2015.

If you wish to serve as lead plaintiff, you must move the Court no later than October 9, 2015.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

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