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GOL Linhas Aéreas Inteligentes S.A. Class Action Lawsuit

Case Summary

Company Name
GOL Linhas Aéreas Inteligentes S.A.
Stock Symbol
GOL
Class Period
March 14, 2019 to July 22, 2020
Court
Eastern District of New York

The GOL Linhas Aéreas Inteligentes S.A. class action lawsuit charges GOL Linhas Aéreas and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of GOL Linhas Aéreas securities between March 14, 2019 and July 22, 2020, inclusive (the “Class Period”).  The GOL Linhas Aéreas class action lawsuit was commenced on September 11, 2020 in the Eastern District of New York and is captioned Hornea v. GOL Linhas Aéreas Inteligentes S.A., No. 20-cv-04243.

GOL Linhas Aéreas provides air passenger transportation services in Brazil, the rest of South America, the Caribbean, and the United States.

The GOL Linhas Aéreas class action lawsuit alleges that during the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) GOL Linhas Aéreas had material weaknesses in its internal controls; (2) there was substantial doubt as to GOL Linhas Aéreas’s ability to continue to exist as a going concern because of negative net working capital and net capital deficiency; and (3) as a result, defendants’ statements about GOL Linhas Aéreas’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On June 16, 2020, GOL Linhas Aéreas filed a Notification of Late Filing on Form 12b-25 with the U.S. Securities and Exchange Commission (“SEC”), stating that it could not timely file its annual report for fiscal year 2019.  GOL Linhas Aéreas further revealed that: (1) the independent auditor’s report on GOL Linhas Aéreas’s internal control over financial reporting as of December 31, 2019 would probably include one or more material weaknesses; and (2) the independent auditor’s report on GOL Linhas Aéreas’s consolidated financial statements as of and for the year ended December 31, 2019 would probably include an emphasis paragraph regarding GOL Linhas Aéreas’s ability to continue as a going concern.  On this news, the price of GOL Linhas Aéreas shares fell more than 3.5%.

Then, on June 29, 2020, GOL Linhas Aéreas filed its annual report for the fiscal year ending December 31, 2019, which disclosed several material weaknesses in GOL Linhas Aéreas’s internal controls.  On this news, the price of GOL Linhas Aéreas shares fell an additional 2%.

Finally, on July 23, 2020, GOL Linhas Aéreas announced that it had dismissed KPMG Auditores Independentes as GOL Linhas Aéreas’s registered auditing firm.  On this news, the price of GOL Linhas Aéreas shares fell more than 7%, further damaging investors.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

Class Period: March 14, 2019 - July 22, 2020
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