NEW YORK, — Scott+Scott, Attorneys at Law, LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against Kobe Steel, Ltd (KBSTY) (“Kobe Steel” or the “Company”) and certain of its officers, related to alleged violations of federal securities laws. If you purchased Kobe Steel American Depository Receipts (“ADRs”) between May 29, 2013 and October 12, 2017, you are encouraged to contact a Scott+Scott attorney at (844) 818-6982 for additional information.
Kobe Steel is one of Japan’s largest steel manufacturers and a major supplier of aluminum and copper products. The Company’s other business segments include wholesale power supply machinery, construction machinery, real estate and electronic materials.
The complaint alleges that Kobe Steel misrepresented the quality of its products and the integrity of its operations, product safety, and compliance issues. Defendants’ statements were materially false or misleading because the Company intentionally falsified data on many of its aluminum, copper, iron, and steel products, and knowingly sold products that failed quality control tests.
Specifically, between October 8, 2017 and October 13, 2017, Kobe Steel admitted to falsifying inspection certificates on core products in its aluminum and copper and iron and steel segments and not complying with customer standards.
As a result, the price of Kobe Steel ADRs declined significantly, from $5.92 on October 6, 2017 to $3.55 on October 13, 2017 – a total decline of 40%.
Subsequent news reports and the Company’s own internal investigation revealed that Kobe Steel’s lack of quality controls and data tampering was a result of, among other things, wholly inadequate and ineffective corporate governance and compliance initiatives.
What You Can Do
If you purchased Kobe Steel ADRs between May 29, 2013 and October 12, 2017, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Joe Pettigrew at (844) 818-6982, or at [email protected]. Investors have until February 26, 2018, to move for lead plaintiff.
About Scott+Scott, Attorneys at Law, LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.