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Cresud (CRESY)

NasdaqGS:CRESY

Summary

Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $100,000 Investing In Cresud Sociedad Anonima Comercial, Inmobiliaria, Financiera y Agropecuaria To Contact The Firm Before Lead Plaintiff Deadline

Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Cresud Sociedad Anonima Comercial, Inmobiliaria, Financiera y Agropecuaria (“Cresud” or the “Company”) (NasdaqGS:CRESY) of the June 28, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.

The lawsuit has been filed in the U.S. District Court for the Eastern District of Pennsylvania on behalf of all those who purchased Cresud American Depositary Receipts (“ADRs”) between May 13, 2015 and December 30, 2015 (the “Class Period”).  The case, Tomka v. Cresud Sociedad Anonima Comercial, Inmobiliaria, Financiera Y Agropecuaria, No. 16-cv-02061 was filed on April 29, 2016, and has been assigned to Judge Paul S. Diamond.  Cresud is the majority owner of IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA”).  Dolphin Netherlands B.V. (“Dolphin”) is a subsidiary of IRSA.

The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose the legal and organizational standing of Dolphin and whether the subsidiary’s IDB Development Corporation Limited’s (“IDBD”) $6.7 billion net debt should be consolidated with the IRSA’s financial statements.

Specifically, on November 19, 2015, Spruce Point Capital Management published an investment research report (“Report”) asserting that Dolphin does not adequately qualify as a Venture Capital Organization, and therefore, IDBD’s $6.7 billion net debt should be consolidated with the IRSA’s financial statements. As such, the complaint alleges that Cresud also failed to consolidate the IDBD’s $6.7 billion net debt into its financial statements.  Furthermore, IRSA’s impending consolidation of IDBD’s debt would violate IRSA’s Global Notes Indenture which prohibits its EBITDA to interest coverage ratio to be less than 1.75x.

After the publication of the Report, Cresud’s share price fell from a closing price of $12.68 per share on November 20, 2015 to a closing price of $11.13 on November 20, 2015—a $1.55 or a 12.2% drop. 

Take Action

If you invested in Cresud ADR between May 13, 2015 and December 30, 2015 and would like to discuss your legal rights, please fill out the form below. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.  Faruqi & Faruqi, LLP also encourages anyone with information regarding Cresud’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Request Information

Please tell us about yourself by completing the form and we will provide you with additional
information on how to join the Class Action at no cost to you.

  • Case:
    Cresud (CRESY)
  •    

* The submission of this form does not create an attorney-client relationship.

Contact Counsel

Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330

Email:

Case Details

Date:

  • 05/02/2016

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