Loma Negra Compania Industrial Argentina Sociedad Anonima
- Company Name
- Loma Negra Compania Industrial Argentina Sociedad Anonima
- Stock Symbol
- Class Period
- Purchasers of Loma Negra American Depositary Shares pursuant or traceable to the November 2017 initial public offering
- Motion Deadline
- February 3, 2019
- Southern District of New York
The complaint charges Loma Negra and certain of its officers and directors with violations of the Securities Act of 1933. Loma Negra is a South American manufacturer and distributor of cement, concrete and other building materials. In November 2017, defendants commenced Loma Negra’s initial public offering (“IPO”), issuing approximately 53.5 million American Depositary Shares (“ADSs”) to the investing public at $19 per share pursuant to a Registration Statement and Prospectus issued in connection with the IPO (the “Offering Documents”).
The complaint alleges that the Offering Documents contained untrue statements of material fact and omitted to state material facts both required by governing regulations and necessary to make the statements made therein not misleading. Foremost, the Offering Documents downplayed and misrepresented Loma Negra’s exposure to a massive, ongoing corruption scandal engulfing its majority owner, InterCement Participações S.A. The Offering Documents further misrepresented the purported benefits to Loma Negra from an increase in demand for Loma Negra’s cement and other products, which defendants misrepresented was a result of economic growth and government funding for public works projects in Argentina. Finally, the Offering Documents misrepresented events and trends in the Argentinian economy, as well as Loma Negra’s exposure thereto. As a result of these misrepresentations in the Offering Documents, the price of Loma Negra ADSs traded as high as $25 per share following the IPO.
The Offering Documents, which were filed with the SEC and issued to investors in connection with the IPO, included the above misrepresentations and omissions. The IPO was extremely lucrative for Loma Negra and the other defendants, who raised more than $1 billion in gross proceeds. However, when the truth about defendants’ misrepresentations and omissions became known, the price of Loma Negra shares suffered sharp declines. By the commencement of the action, Loma Negra ADSs were trading below $11 per share, a decline of more than 40% from the offering price.