The Law Offices of Vincent Wong announce that a class action lawsuit has been commenced in the Eastern District of Pennsylvania on behalf of investors who purchased Cresud Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria (“Cresud”) (NASDAQ: CRESY) American Depositary Shares (ADRs) between May 13, 2015 and December 30, 2015.
Cresud is the majority owner of IRSA Inversiones y Representaciones Sociedad Anónima (“IRSA”). Dolphin Netherlands B.V. (“Dolphin”) is a subsidiary of IRSA. The complaint alleges that, throughout the Class Period, defendants issued false and misleading statements to investors and/or failed to disclose that: (1) Dolphin does not adequately qualify as a Venture Capital Organization, and therefore, IDB Development Corporation Limited’s (“IDBD”) $6.7 billion net debt should be consolidated with IRSA’s financial statements; (2) as such, Cresud’s financial statements failed to consolidate IDBD’s $6.7 billion net debt; (3) IRSA’s impending consolidation of IDBD’s debt would violate IRSA’s Global Notes Indenture, as IRSA would be in breach of the “Incurrence of Additional Indebtedness” covenant, which prohibits its EBITDA to interest coverage ratio to be less than 1.75x; and (4) as a result, the Company’s public statements were materially false and misleading at all relevant times.
If you suffered a loss in Cresud you have until June 28, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
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