RADNOR, Pa., Nov. 26 /PRNewswire/ -- The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of purchasers of American Depository Receipts ('ADRs' or 'shares') of Sadia S.A. (NYSE: SDA) ('Sadia' or the 'Company') between April 30, 2008 and September 26, 2008 inclusive (the 'Class Period').
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@btkmc.com.
The Complaint charges Sadia and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Sadia is a refrigerated and frozen protein products company that offers processed products, poultry, and pork in Brazil. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company had entered into currency derivative contracts that were unnecessary, too large, and in clear violation of the Company's hedging policy; (2) that the Company's exposure to currency contracts was not 'nominal,' but rather extremely large and speculative; (3) that the Company lacked adequate internal and financial controls; (4) that the Company's financial statements, by not accounting for Sadia's exposure to currency market fluctuation, were materially false and misleading at all relevant times; and (5) 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 25, 2008, the Company shocked investors when it announced that it had suffered losses of R$760 million (U.S. $410 million) due to investments in currency contracts hedging against the U.S. dollar. The Associated Press reported that the Company's losses on these contracts were likely greater than the Company's earnings for 2008.
