Cemex, S.A.B. de C.V.
- Company Name
- Cemex, S.A.B. de C.V.
- Stock Symbol
- Class Period
- August 14, 2014 to March 13, 2018
- Motion Deadline
- May 15, 2018
- Southern District of New York
The complaint charges Cemex and certain of its officers with violations of the Securities Exchange Act of 1934. Cemex is a global building materials company that produces, distributes and markets cement, ready-mix concrete, aggregates and related building materials. Cemex operates throughout the Americas, Europe, Africa, the Middle East, and Asia.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and operations, including that Cemex lacked adequate internal controls over financial reporting, which allowed its executives to engage in an unlawful bribery scheme in connection with the Company’s business dealings in Colombia, the discovery of which would likely subject the Company to heightened regulatory scrutiny and potential criminal sanctions. As a result of defendants’ false statements and/or omissions, Cemex securities traded at artificially inflated prices during the Class Period, with its American Depositary Receipts (“ADRs”) reaching prices close to $12 per share.
On September 23, 2016, Cemex disclosed the dismissal of two of its senior executives after an internal probe found that payments worth $20 million relating to a land deal in Colombia had breached company protocols. On this news, the price of Cemex ADRs fell more than 2% to close at $7.26 per share on September 26, 2016. On December 9, 2016, Cemex disclosed receipt of a subpoena from the SEC seeking information about irregular payments made at the Company’s Colombia unit.
Then, on March 14, 2018, Cemex disclosed that the U.S. Department of Justice was investigating the Company over payments it made to a cement plant it was building in Colombia to determine whether any violations of federal bribery laws had occurred. On this news, the price of Cemex ADRs fell $0.12 per share, or 1.64%, to close at $7.21 per share on March 14, 2018.